Acta Univ. Agric. Silvic. Mendelianae Brun. 2013, 61, 2835-2842
Published online 2013-12-24

Impact of money supply on stock bubbles

Martin Širůček

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

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.


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