The interaction between monetary policy and stock price is a multi-faceted argument which engaged many researchers in a heater debate for ages. As early as in 1960, researchers start to show substantial interest in identifying the influence of monetary policy on equity market's performance. Sprinkel(1964) employed monetary portfolio model supported the view that growth rate of money supply could serve as a leading indicator of stock price changes. The co-movements in stock market has been documented by numerous acadamics including Homa and Jaffee (1971) Kochin (1972) and Modigliani (1972).
Showing posts with label Monetary Policy. Show all posts
Showing posts with label Monetary Policy. Show all posts
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