Copyright © 2018 Charles Kwofie and Richard Kwame Ansah.This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.The result showed no long-run relationship among the variables.Tags: Writing A Christmas Letter Creative IdeasAnd Life Contrasted-Or An Essay On ManNursing School Scholarship EssayRelationship Marketing DissertationWilliam Paterson University Application EssayTopics For College EssayA Written Essay Comparing Diana Ross And Beyonce KnowlesExample Of Academic Research PaperShort Essay On Diversity In N CultureElements Of A Good Essay
According to Ibrahim and Agbaje , the stability of prices is vital in establishing whether the level of inflation will be constant or unstable in an economy.
They also argued that inflation is the constant increase in prices over a period of time.
This invariably means that the growth and sustainability of the stock market are of relevance to the government, institutions, and individual investors.
Most investors invest in stocks with the idea of maximizing the returns on their investment.
He discovered that the elasticity of real income was positive, while that of inflation and exchange rate was negative.
Tian and Ma  employed the cointegration ARDL approach to study the relationship between exchange rate and the Chinese share market.
However, these decisions are made without taking into account the effect that macroeconomic variables such as inflation and exchange rate can have on the stock prices of the listed companies . (2009) argued that stock markets have an essential role to play in the economy.
According to them, stock markets serve as a source for the mobilization of domestic resources for productive investments.
They further stated that to perform this role the stock market must have a significant relationship with the economy.
Inflation, defined as the sustained, ongoing process of continuously rising level of general prices, is arguably a common concern to any government, since it serves as a proxy to determining how well its economy is doing.