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"This paper examines the association between inflation, monetary policy and U.S. stock market conditions during the second half of the 20th century. We estimate a latent variable VAR to examine how macroeconomic and policy shocks affect the condition of the stock market. Further, we examine the...
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evidence for the past 20 or 30 years and which has produced mixed results. We then examine the role of global shocks and shock …
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