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THE ROLE OF MUTUAL FUNDS IN U.S. ECONOMY

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Author(s): Delia-Elena DIACONAŞU

Journal: Annals of the Stefan cel Mare University of Suceava : Fascicle of the Faculty of Economics and Public Administration
ISSN 2066-575X

Volume: 11;
Issue: 2(14);
Start page: 239;
Date: 2011;
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Keywords: financial markets | intestment funds | inflation rate | stocks | bonds | interest rate | monetary assets

ABSTRACT
The main aim of this article is to present the correlations between different macroeconomic indicators and thedynamics of mutual funds in U.S. The direct relationship between inflation rate and net subscription of stock funds inthe US market is validated. On the other hand, a lower interest rate in US means investing people’s savings inmonetary and bond funds. We have also shown an indirect link between interest rate and bond funds. We couldn’thighlight the direct link between global funds and its balance of payments and the country's GDP. The weak correlationbetween balance of payments and global funds is due to the fact that in the current account balance are included otherfinancial flows that are much larger and with a greater influence on it, such as imports and exports. Also, the weakcorrelation between the net assets of global funds and the evolution of GDP is due to influence of other factors thatleads to the decision of investing internationally. We have also shown the importance of investment funds by increasingwhat they hold in total savings of the population. This increase is explained both by placing the weight of massive cashof traders in investment funds and by the existence of a higher utility of personal savings invested in investment fundsaimed at saving for retirement. Also we briefly highlighted the role of investment companies in the State unemploymentrate.
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