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This assumption (that governments [in the a broad sense of the term] prop up stock prices deliberately) has been taken as a given/assumption in another question here.

Is there evidence that they actually and deliberately do that (i.e. prop up stock prices) though, instead of that being a side-effect of "propping up" the "mainstreet" economy?

Evidence I would accept:

  • Explicit declarations e.g from relevant government institutions (e.g. central banks, fiscal policy makers) that "propping up" stock market prices is a goal.
  • Econometric analyses that somehow prove that the "real goal" of stimulus measures is propping up stock prices, "above and beyond" the "real/mainstreet economy."
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    $\begingroup$ I don’t think you will find any evidence of that. The stock might be used as an indicator but I don’t know of any central banker that would on purpose inflate asset prices (as they can lead to asset bubbles). If anything that’s one thing they worry about and why ECB was so slow in reacting to Great Recession and why Fed started to do the tapering. $\endgroup$ – 1muflon1 Apr 10 at 11:37

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