The Fed, Money Supply, and Stock Prices

The Fed, Money Supply, and Stock Prices
The Federal Reserve building is set against a blue sky in Washington, D.C., on May 1, 2020. Kevin Lamarque/Reuters
Robert Genetski
Updated:
Commentary 

In 1977, I co-authored the book, “Winning With Money,” explaining the relationship between the money supply and stock prices. Our work confirmed that while money supply changes affect the economy six to nine months later, the lag is much shorter for stock prices.

Robert Genetski
Robert Genetski
Author
Robert Genetski is a public speaker, author, columnist, and one the nation’s leading economists. He has taught economics at the University of Chicago’s Graduate School of Business and NYU. His latest book is “Rich Nation, Poor Nation: Why Some Nations Prosper While Others Fail.” Genetski’s website is ClassicalPrinciples.com.
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