Stock Prices and Money Velocity: A Multi-Country Analysis

M. Caruso

Working Papers from Banca Italia - Servizio di Studi

Abstract: What kind of information do stock prices offer for predicting velocity? This paper develops previous work by Milton Friedman for the US economy and shows that a wealth effect derived from the stock market has negatively influenced the ratio of nominal income to a broad definition of money in a panel of 25 countries.

Keywords: STOCK MARKET; PRICES; MONEY; FINANCIAL MARKET (search for similar items in EconPapers)
JEL-codes: E40 G10 G12 G19 (search for similar items in EconPapers)
Pages: 63 pages
Date: 1996
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Persistent link: https://EconPapers.repec.org/RePEc:fth:banita:264

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