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Article: Causality between the money supply and share prices: a VAR investigation. (vector autoregressive)
- Article from:
- Quarterly Journal of Business and Economics
- Article date:
- June 22, 1993
- Author:
CopyrightCOPYRIGHT 1993 University of Nebraska-Lincoln. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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INTRODUCTION
For many years the economic impact of the money supply on share prices has been debated in the economics literature. This topic has regained popularity in the wake of recent share market volatility in the United States. This volatility has drawn the attention of many economists and policy officials since the 1987 share market crash. The crash sent shock waves through the world's financial markets. Credit markets and commodity markets registered sharp swings in response (Federal Reserve Bank of Kansas City Symposium Series, 1988). The crash and its accompanying swings have raised the question of what, if anything, can be done to moderate volatility in ...