Journal Article
Federal deficits and the stock market
Abstract: Empirical evidence shows that federal budget deficits have historically tended to increase stock market prices. Because deficits rose to unprecedented levels in the 1980s, however, increasing concern about their impact on interest rates and inflation may have contributed to the October 1987 decline in stock prices.
Keywords: Deficit financing; Budget; Stock market;
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File(s): File format is application/pdf https://www.kansascityfed.org/documents/1239/1988-Federal%20Deficits%20and%20the%20Stock%20Market.pdf
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Bibliographic Information
Provider: Federal Reserve Bank of Kansas City
Part of Series: Economic Review
Publication Date: 1988
Volume: 73
Issue: Apr
Pages: 17-27