the relationship between the monetary policy and stock price


The coursework consists of a 3,000 words essay. The topic I want you to write is the same as my dissertation (the relationship between the monetary policy and stock price), but please don’t use China as an example. You may need some information from lecture or seminar that I provided. The development of your work is at your choice in the sense that after a general introduction, you can focus on one or another aspect of the topic. Just to make an example. Suppose that you want to focus on the relationship between monetary policy and stock market: you may want to highlight how important is monetary policy for the economic system. Then you may want to introduce Taylor rule and discuss the determinants of monetary policy, including the role of the stock market. After this, you may want to discuss the relationship between monetary policy and stock market in a given country; or you may want to investigate the empirical literature on how that relationship has been tested. As I said, you may decide on which aspect of the topic you want to focus on.
Please remember that the coursework is mostly a literature review (let us say 75-80% of your work). Then you should clarify the empirical methodology that you would follow to test the theory underlined in your literature review (no more than 25% of your coursework). The similarity should no more than 5% (excluding references). It is better to have more than 15 references.
You do not need to provide any empirical result or to use Eviews. The coursework is simply a literature review of the topic.
The work should due on the 18th of April.

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