Author (Your Name)

Simon Amich, Colby College

Date of Award

2002

Document Type

Honors Thesis (Colby Access Only)

Department

Colby College. Economics Dept.

Advisor(s)

Michael R. Donihue

Second Advisor

Randy Nelson

Abstract

This paper discusses the conduct of U.S. monetary policy during the chairmanship of Alan Greenspan . It looks at the evolution of monetary policy in a new, highly technological environment. Through regression analysis the paper estimates the change in stock market value due to the terrorist attacks of September 11th. In order to isolate the event's impact, abnon:na1 returns are calculated for the S&P 500 index by subtracting out returns attributable to overall movements in the stock market. Furthermore, the paper analyzes the stock market's response to monetary policy before and after the attacks, as well as changes in Federal Reserve transparency. It estimates the impact of anticipated and unanticipated monetary policy announcements on S&P 500 value.

Keywords

Monetary policy -- United States, Stocks -- Prices, Stock exchanges -- United States, Greenspan, Alan, 1926-

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