U.S. Monetary Policy, Monetary Aggregates and S&P 500 Stock Prices: An Empirical Analysis, 2009-2016
Presenter(s)
Alison M Berry
Files
Description
After the 2008 recession, the U.S. Federal Reserve Bank undertook massive quantitative easing in order to shore up the financial markets and facilitate economic growth. In this study I examine the relationship between money supply growth and the expansion of financial markets with a particular focus on S&P 500 stock returns. I test the hypothesis that stock prices covary directly with money supply growth i.e. R=A+B(MS) where R is the stock return, MS is the money supply, and A and B are the equation perimeters. I expect B to be greater than zero. Three measures of the money supply are used in the regression analysis: (1) the adjusted monetary base, (2) M1 money supply, and (3) M2 money supply. The time period 2009-2016 is considered to be a period of aggressive monetary easing.
Publication Date
4-5-2017
Project Designation
Independent Research - Undergraduate
Primary Advisor
Trevor C. Collier
Primary Advisor's Department
Economics and Finance
Keywords
Stander Symposium project
Recommended Citation
"U.S. Monetary Policy, Monetary Aggregates and S&P 500 Stock Prices: An Empirical Analysis, 2009-2016" (2017). Stander Symposium Projects. 945.
https://ecommons.udayton.edu/stander_posters/945
