Skip to main content

ETHNOS_APP

Home • Search • Journals • List 0

Money and the Stock Market

Bibliographic Data

ID10181032
AuthorsMilton Friedman (corresponding author)
Year1988
Volume96
Issue2
Pages221-245
Publication date1988-04-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueJournal of Political Economy (JOURNAL)
Journal identifiersISSN: 0022-3808 • E-ISSN: 1537-534X
PublisherUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/261534
OpenAlexW2066866124
LanguageEN
Citations received9
References cited1

Quarterly data for the period from 1961 to 1986 suggest that the real quantity of money (defined as M2) demanded relative to income is positively r elated to the deflated price of equities (Standard and Poor's composi te) three quarters earlier and negatively related to the contemporane ous real stock price. The positive relation appears to reflect a weal th effect; the negative, a substitution effect. The wealth effect app ears stronger than the substitution effect. The volume of transaction s has an appreciable effect on M1 velocity but not on M2 velocity. An nual data for a century suggest that the apparent dominance of the we alth effect is the exception, not the rule. Copyright 1988 by University of Chicago Press

Dominance (genetics · Econometrics · Economics · Endogenous money · Financial economics · Monetary economics · Monetary policy · Stock (firearms · Stock market · Velocity of money · Wealth effect · Chemistry · Monetary Policy and Economic Impact

  • Retracted

    Open Access•Nicole Verrochi Coleman, Patti Williams et al.•Journal of Consumer Research•2017

  • Stock Market Downswing and the Stability of European Monetary Union Money Demand

    Kai Carstensen•Journal of Business and Economic…•2006

  • Money Demand and the Stock Market in a General Equilibrium Model with Variable Velocity

    Glenn W Boyle•Journal of Political Economy•1990

  • The Determination of Sterling M3, 1963-88

    John Foster•The Economic Journal•1992

  • The nexus between stock market value and demand for money in China

    Terence Tai‐leung Chong, Xiaobing Zhang•China Economic Journal•2009

  • Does money supply growth drive housing boom in China? A wavelet-based analysis

    Open Access•Xiaoqing Wang, Lin-Na Hao et al.•Journal of Housing and the Built…•2019

  • The dynamics of housing demand under a linked-exchange rate system

    Open Access•Eddie C M Hui, Eddie Chi-Man Hui et al.•Habitat International•2014

  • La demande de monnaie dans la zone euro revisitée

    Sylvie Lecarpentier‐Moyal, Sylvie Lecarpentier-Moyal et al.•Revue économique•2012

  • The Ghosts I Called I Can't Get Rid of Now

    Robert Leeson•History of Political Economy•1998

  • The Demand for Money by Households, Money Substitutes, and Monetary Policy

    Michael J Hamburger•Journal of Political Economy•1966

Unique citing works9
Citations per year0,25
Citation span1990 - 2019 (30)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 9

Tools

Open DOISci-Hub
Ethnos_APP • Open Source Project • MIT License • Frontend v2.0.0 • Privacy and Cookies • API Documentation: api.ethnos.app/docs • API Source Code: GitHub • DOI: 10.5281/zenodo.17049435 • Frontend Source Code: GitHub • DOI: 10.5281/zenodo.17050053 • cruz.rio.br • Expectantes Misericordiae