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March 1986

Posted 1986-03-01

The Response of Stock Prices to Changes in Weekly Money and the Discount Rate

by R. W. Hafer

R. W. Hafer investigates several aspects of the efficient markets hypothesis: Do stock prices react only to unanticipated changes in the money stock? Are the magnitudes of these effects different across different monetary policy procedures?

Posted 1986-03-01

The Effects of Inflation on Commercial Banks

by G.J. Santoni

G. J. Santoni examines this issue by analyzing the relationship between inflation and the stock prices of publicly traded banks. The author’s results indicate that the real share prices of banks fall when the actual rate of inflation is greater than the anticipated rate of inflation.