Stock Prices and Monetary Policy: An Impulse Response Analysis

Volume: 3 Number: 3 September 1, 2013
  • Guglielmo Maria Caporale
  • Alaa M. Soliman
EN

Stock Prices and Monetary Policy: An Impulse Response Analysis

Abstract

This paper analyses the relationship between monetary policy and the stock market with the aim of gaining new insights into the transmission mechanism of monetary policy. The empirical findings shed light on the importance of stock prices for money demand and therefore provide useful information to monetary authorities to decide on policy actions. A technique developed by Wickens and Motto (2001) for identifying shocks by estimating a VECM for the endogenous variables is employed. The reported evidence suggests that stock markets play a significant role in the money demand function.

Keywords

Details

Primary Language

English

Subjects

-

Journal Section

-

Authors

Guglielmo Maria Caporale This is me

Alaa M. Soliman This is me

Publication Date

September 1, 2013

Submission Date

September 1, 2013

Acceptance Date

-

Published in Issue

Year 2013 Volume: 3 Number: 3

APA
Caporale, G. M., & Soliman, A. M. (2013). Stock Prices and Monetary Policy: An Impulse Response Analysis. International Journal of Economics and Financial Issues, 3(3), 701-709. https://izlik.org/JA64ZC43FH
AMA
1.Caporale GM, Soliman AM. Stock Prices and Monetary Policy: An Impulse Response Analysis. IJEFI. 2013;3(3):701-709. https://izlik.org/JA64ZC43FH
Chicago
Caporale, Guglielmo Maria, and Alaa M. Soliman. 2013. “Stock Prices and Monetary Policy: An Impulse Response Analysis”. International Journal of Economics and Financial Issues 3 (3): 701-9. https://izlik.org/JA64ZC43FH.
EndNote
Caporale GM, Soliman AM (September 1, 2013) Stock Prices and Monetary Policy: An Impulse Response Analysis. International Journal of Economics and Financial Issues 3 3 701–709.
IEEE
[1]G. M. Caporale and A. M. Soliman, “Stock Prices and Monetary Policy: An Impulse Response Analysis”, IJEFI, vol. 3, no. 3, pp. 701–709, Sept. 2013, [Online]. Available: https://izlik.org/JA64ZC43FH
ISNAD
Caporale, Guglielmo Maria - Soliman, Alaa M. “Stock Prices and Monetary Policy: An Impulse Response Analysis”. International Journal of Economics and Financial Issues 3/3 (September 1, 2013): 701-709. https://izlik.org/JA64ZC43FH.
JAMA
1.Caporale GM, Soliman AM. Stock Prices and Monetary Policy: An Impulse Response Analysis. IJEFI. 2013;3:701–709.
MLA
Caporale, Guglielmo Maria, and Alaa M. Soliman. “Stock Prices and Monetary Policy: An Impulse Response Analysis”. International Journal of Economics and Financial Issues, vol. 3, no. 3, Sept. 2013, pp. 701-9, https://izlik.org/JA64ZC43FH.
Vancouver
1.Guglielmo Maria Caporale, Alaa M. Soliman. Stock Prices and Monetary Policy: An Impulse Response Analysis. IJEFI [Internet]. 2013 Sep. 1;3(3):701-9. Available from: https://izlik.org/JA64ZC43FH