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Impact of money supply on stock bubbles

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  • Martin Širůček

    (Department of Finance, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic)

Abstract

This article focuses on the effect and implications of changes in money supply in the US on stock bubble rise on the US capital market, which is represented by the Dow Jones Industrial Average index. This market was chosen according to the market capitalization. The attention of the paper is drawn to issues - if according to the results of empirical analysis, the money supply is a significant factor which causes the bubbles and if during the time the significance and impact of this macroeconomic factor on stock index increase.

Suggested Citation

  • Martin Širůček, 2013. "Impact of money supply on stock bubbles," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 61(7), pages 2835-2842.
    • Handle: RePEc:mup:actaun:actaun_2013061072835
    DOI: 10.11118/actaun201361072835
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    Cited by:

    1. Dhruv Rawat & Sujay Patni & Ram Mehta, 2021. "Stock prices and Macroeconomic indicators: Investigating a correlation in Indian context," Papers 2112.08071, arXiv.org, revised Feb 2022.
    2. Constantin ANGHELACHE & Madalina Gabriela ANGHEL & Cristina SACALA, 2016. "The Financial Sector Influence On Portfolio Dynamics," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 64(7), pages 9-13, July.

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    More about this item

    Keywords

    money supply; stock market; stock bubbles; Granger causality; Dickey-Fuller test;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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