| dc.description.abstract | The target of this research is to integrate the issues of interest rates and share prices, scrutinizing the connections between monetary policy, share prices, and macroeconomic factors. The research attempted to analyze the connection of monetary policy, share prices, and macroeconomic indicators after the opening of foreign direct investment (FDI) in stock market and the amelioration of financial markets in 2000. The main axis of discussion is about the long-term balance and short-term interactive relationship of the sequences, which are interest rates, weighted stock index, New Taiwan Dollar and US Dollar exchange differences, total export values, gross domestic product (GDP), index of industrial production, and unemployment rate.
Depending upon the outcome, there was a superiority that the change of interest rate could prior to reflect the tendency of macroeconomics as well as there was a leading position that the change of interest rate could prior to the change of macroeconomic indicators. Additionally, changes between share prices and exchange rates represented an inverse relationship that the rising share prices accompanying with the appreciation of exchange rates. Furthermore, the outcome referred the change of share prices brought about the interest rate change of Granger Cause whereas the change of exchange rate resulted in the interest change of Granger Cause; namely, the change of interest rates are respectively the causes of the change of export rate, the change of industrial production, and the change of unemployment rate. Eventually, the ebb and flow of weighted stock index was the leading indicator of macroeconomics.
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