The intricate relationship between monetary policy and stock prices has been a subject of extensive inquiry within the literature. Scholars, including Thorbecke (1997), Patelis (1997), Bernanke and Kuttner (2005), Ioannidis and Kontonikas (2008), Bjornland and Leitemo (2009), and Nemaorani (2012), have approached this topic from diverse perspectives and methodologies. Their collective efforts have yielded insights into the dynamics of this relationship, highlighting its nuanced nature and the influence of structural and institutional factors on its strength and directionality. This abstract synthesizes the findings of the empirical literature on the interaction between monetary policy and stock prices, elucidating the multifaceted nature of this relationship. By drawing upon the contributions of various scholars, the paper offers a comprehensive overview of the mechanisms through which monetary policy influences stock prices and vice versa. Moreover, it examines the role of contextual factors, such as economic structure and institutional arrangements, in shaping the intensity and direction of these interactions.
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