When Do Stock Market Booms Occur? The Macroeconomic and Policy Environments of 20th Century Booms
Year: 2006
Type: report
Abstract: This paper studies the macroeconomic conditions and policy environments under which stock market booms occurred among ten developed countries during the 20 th Century.We find that booms tended to occur during periods of above-average growth of real output, and below-average and falling inflation.We also find that booms often ended within a few months of an increase in inflation and monetary policy tightening.The evidence suggests that booms reflect both real macroeconomic phenomena and monetary policy, as well as the extant regulatory environment.
DOI: 10.20955/wp.2006.051
Authors: Michael D. Bordo, David C. Wheelock
Language: English
Domain: Social Sciences
Open Access status: gold
OpenAlex ID: W3125885060