The effect of money supply on stock market volatility in Kenya
Date
2014-03-14
Authors
Nyaribo, Meshack Mogambi
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
This paper considers the effect of money supply on stock market volatility, using M2 as a measure of money supply since it is a measure of broad money in the economy. This relationship is important because the level of money supply determines the amount of disposable income available to individuals to consume and invest, with the stock market being one of the avenues to invest. The study finds that the money supply has an impact on stock market volatility and the impact is persistent.
Description
A research project submitted in partial fulfilment for the Award of Bachelor of Business Science in Financial Economics
Keywords
Money supply effect, Stock market volatility, Kenya