1. What is the effect of monetary policy on the stock prices in the United States and around the world?

Question

1. What is the effect of monetary policy on the stock prices in the United States and around the world?

Answer 1

A loose monetary policy can boost stock prices, since in such an enviroment money is generally more available for investments of all time.

But today with the sinking dollar and relatively high inflation, the current loose policy has had zero effect.

Our current problems are not due to a lack of money; our probs are more systemic: notibly a weakness in the housing sector.

Thus the current situation is not typical.