Money Supply Index (MSI) by zdmre

The primary objective of the states monetary policy is to maintain price stability with sustainable maximum economic growth. In anticipation of higher inflation , the Central Banks raise short-term interest rate thereby to reduce money supply. Conversely, the Central Banks reduce short-term interest rate to inject additional money into the economy in apprehension of unleashing recessionary forces. The stock markets usually respond negatively to interest rate increases and positively to interest rate decreases. The linkages between money market and stock market a wealth effect due to a change in money supply disturbs the equilibrium in the portfolio of investors.

This index indicates the long-run and short-run dynamic effects of broad money supply (M2) on U.S. stock market (this symbol is optional (Bitcoin, Gold or Oil or other markets etc.)).

#DYOR

Notes de version:

Added Symbol on Chart option.