Researcher ORCID Identifier
0009-0002-3674-2789
Graduation Year
2023
Date of Submission
4-2023
Document Type
Open Access Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
Julio Garin
Terms of Use & License Information
Rights Information
© 2023 Connor A. Cryan
Abstract
The goal of this paper is to perform a comparative analysis between the United States Federal Reserve’s response to the 2008 Global Financial Crisis and the COVID-19 recession, and determine how each response affected the United States stock market. I have found that during the 2008 Global Financial Crisis, money supply increases did not have a substantial impact on the US stock market, while factors such as market volatility and unemployment rate had highly significant negative effects on stock returns. During the COVID-19 recession, money supply changes did have an impact on stock returns, and had a positive relationship with the price of the S&P 500 index. Furthermore, factors such as market volatility and unemployment rate were negatively correlated with S&P 500 prices. The results of this study carry important implications for both policymakers and investors on how to better handle future recessionary events, and potentially profit from them.
Recommended Citation
Cryan, Connor, "The Effect of Changes in US Money Supply on S&P 500 Returns During the Global Financial Crisis and COVID-19 Recession" (2023). CMC Senior Theses. 3372.
https://scholarship.claremont.edu/cmc_theses/3372
