Published : 2017-03-14

Alternative evaluation of S&P 500 index in relation to quantitative easing

Martin Širůček



Ondřej Galečka



Abstract

The paper focuses on the impact of money supply on the S&P 500 stock index. The main goal is by using selected indicators identify the bubble. That is meaning, accord-ing to the results bring to the investors recommendations what indicator they should to use for early identification of the price bubble. The paper deals with two „standard” indicator and one „behavioural”. The first use the rational price bubble variable and compare it with the standard deviation, the second one deals with the ratio market cap-italisation and GDP. As „behavioural” indicator analyses of EPUI and VIX index was used. Empirical results were con-firmed by the „behavioural” variables. Higher accuracy of results acquired the second empirical method, where the divisor was used.

Keywords:

quantitative easing, money supply, MZM, S&P 500, price bubble, policy uncertainty index



Details

References

Statistics

Authors

Download files

PDF

Citation rules

Širůček, M. ., & Galečka, O. . (2017). Alternative evaluation of S&P 500 index in relation to quantitative easing. Forum Scientiae Oeconomia, 5(1), 5–18. https://doi.org/10.23762/fso

Altmetric indicators


Cited by / Share



Wydawnictwo Naukowe Akademii WSB
1c Cieplaka Street
41-300 Dąbrowa Górnicza, Poland
email: wydawnictwo@wsb.edu.pl
tel. +48 32 295 93 59
O platformie:
Copyright 2019 by Akademia WSB
OJS Support and Customization by LIBCOM
Platform & workfow by OJS/PKP
More information about the publishing system, Platform and Workflow by OJS/PKP.