<span lang="EN-IN">Inflation means a persistent change in the price level of goods and services in an economy. It is generally measured in the consumer price index (CPI) or retail price index (RPI). Inflation reduces the purchasing power of a country's currency, as we need more units of currency over time to buy the same goods and services. The current empirical paper entitled “relationship between inflation and stock market evidence from selected global stock markets” have been undertaken with an intention to investigate the relationship between inflation and stock returns of the chosen economies. In order to realize the stated objectives, the researchers have collected the monthly data 2000 to 2017 for selected indices. In the first phase, log returns were computed and it has been tested for the existence of unit root in the distribution. In the second phase, we ran Pearson correlation coefficient for the collected data to find out the association between the inflation and stock returns. Majority of the chosen indices recorded a negative </span><span lang="EN-IN">coefficient with the dependent variable. </span><span lang="EN-IN">For India, Austria, Belgium, Canada, Chile, China, France, Ireland we found a negative coefficient. However, Brazil </span><span lang="EN-IN">Indonesia, Japanese, Mexico, Spanish and Turkey reported a positive coefficient.  </span><span lang="EN-IN">Current study clearly throws light on the effect of inflation on the stock market returns, therefore; it can help the market participants such as traders, fund managers, and investors to make good portfolio decisions based on the information about expected inflation and unexpected inflation. The study confirms that there exists a significant relationship between the stock returns and inflation for Australian, Belgium, Canadian, Chilean, Chinese, French and Irish stock benchmark indices. Firms can take this one has a clue to adjust their reported profits by raising the prices.  The policymakers can employ contractionary policy to reduce the supply of money by offering a low interest rate on t bills, increasing the interest rates (bank rate policy) and increasing the cash reserve ratios which in turn reduces the lending capacity of the banks.</span>

A digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. Therefore, Bitcoin is a form of digital currency that was designed by Satoshi Nakamoto (an unknown author of Bitcoin white paper 2008) and since then it has able to generate a considerable attention from investors due to its decentralized characteristics and the technology (block-chain) behind it. Bitcoin is a form of digital peer-to-peer currency system where transactions take place without a central bank. The transactions are verified by the nodes of the network and recorded in the Blockchain. Since the popularization of Bitcoin, this technology has caught attention of several technology companies who started to do research on the applications and opportunities of this technology. In this paper, an attempt has been made to capture the time varying variance of most prominent Cryptocurrency Bitcoin with world's top traded currencies such as USD, GBP, Euro, Yen and CHF. In order to realise the stated objectives the researchers have collected the data from Prowess and Yahoo finance database from September 2013 till March 2018. In the first phase the collected data has been for normality and stationarity. Bitcoin was modelled for GARCH and EGARCH tests to capture the time varying volatility and leverage effect. Later the Johansen cointegration test has been conducted to find out the existence of cointegration between the top global currencies with Bitcoin. In the last phase the VECM has been run to capture the both long run and short relationship between Bitcoin and top five traded currencies. In the last phase Variance Decomposition has been run to capture the variance explained by the prominent global currencies on Bitcoin. Both USD and GBP share long run relationship with Bitcoin. Finally, the results have been compared with the possible evidence.

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