The impact of money supply on stock prices and stock bubbles
This article is focused on the effect and implication of a change in the money supply for US capital market. This market was chosen according to his part on the global market capitalization. Namely it is the Dow Jones Industrial Average (DJIA), which was chosen according to his long history, global sense and stabile construction. The money supply will be measured by the wider aggregate M2 and aggregate MZM (money with zero maturity). The goal of this paper is detect, if the money supply influence the stock indices in period 1967 - 2011, if the impact of both money aggregates is near the same and how the money supply influence the bubble creation.
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