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Show 99 The direct has stocks common influence of money supply on been Sprinkell considered before by the price of and 2 author, Michael Palmer, without using . others. effect One of such expectations tions, presented stock This but he Palmer, money supply the He stated a represented invest them. In Palmer's chart, trend third, lBeryll R. that is the changes supply and in supply the liquidity disequi not new or unique to thinking of others. amounts of less and would liquid which follows· of supported. show: First, the If this money will people who normally would cash balances copy money assets not seek ,to for cash. (Figure 1), His findings his con- relationship supply and stock prices becomes stronger the in the money relationship Illinois: of rather well seem between money series; a these movements longer the well They would seek propositions cerning of of situation of increases, certain quantities rather broad assump some effect liquidity approach itself in the hands hold such making of place people in librium. close view a price movements. of money find and the the supply continues; between the degree of turning points of second, the two change associated with the Sprinkel, Mony D. Irwin, 1964). and Stock Prices pp. 19-22. two (Homewood, 2Michael Palmer, "Money Supply, Portfolio Adjust " Financial Analysts I Jour,nal ments, and Stock Pr-Lces j (July/August, 1970), the |
