The Impact of Inflation and Gross Domestic Product on Eurozone Investment Funds
The Impact of Inflation and Gross Domestic Product on Eurozone Investment Funds

Author(s): Sandra Šokčević, Leonarda Tutić, Andreja Rudančić
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Investment funds; Inflation; Gross domestic product; Eurozone; European Central Bank; Monetary policy
Summary/Abstract: This paper analyses the effect of inflation and GDP on Eurozone investment funds. It centres on the responsibilities of investment funds, exploring the impact of external, internal, and economic factors on investor capital. The obligations of investment funds represent the shares purchased by investors with the shared currency, the euro. The paper compares the value of investment funds over time, aiming to demonstrate their dependence on macroeconomic policy. The analysis is supported by data on annual inflation rates and annual GDP values within the Eurozone and how these economic variables affect the annual obligations and shares of investment funds. Results from linear regression analysis indicate that investment in these funds decreases as GDP and inflation rates increase, with comparative analysis further supporting this claim. The study is also underpinned by significant factors related to the European Central Bank's (ECB) policy management, illustrating how the ECB's monetary policy directs investments toward other financial assets.

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