Graduation Year


Date of Submission


Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

Richard Burdekin


Based on economic theory, macroeconomic variables such as money supply, inflation, unemployment, and volatility are known to play a significant role in asset prices. This paper aims to determine whether the relationship between macroeconomic variables and stock prices changed during the COVID-19 pandemic. The period this paper analyzes is from 2007-2023 with interactive dummy variables to control for the pandemic periods. Additionally, further analysis was done to determine the effects of the Global Financial Crisis in 2008. The study finds that post 2020 an increase in M2 (money supply) had a stronger but positive influence on the overall markets than it did prior to the pandemic. This supports the notion that an increase in money supply during an economic downturn can boost the overall economy and asset prices. The study also suggests that such a drastic increase in overall money supply can shift relationships between certain macroeconomic variables and stock prices.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.