Over the past week, the KOSPI has risen, but the KOSDAQ has been missing

Over the past week, the KOSPI has risen, but the KOSDAQ has been missing
The KOSPI and KOSDAQ rose together during the stock price rise in 2021

When will the two items go up together and when will they show opposite price trends
If the two items do not have such a large share of the economy as a whole, then the relationship between the two items will be followed
If it is a substitute for each other, it will show the opposite price flow, and if it is a complement, it will show the same price flow

However, what will happen if the size of goods such as KOSPI and KOSDAQ is large enough to be comparable to the size of a country’s economy
At this time, the entire monetary system is more affected than the mechanism of alternatives and complements

If there is no change in the money supply or the money supply is decreasing in a country’s economy, an increase in the price of one thing leads to a decrease in the price of another

On the other hand, if the total money volume is increasing, the prices of two items can rise at the same time

The recent movement of conflicting prices between the KOSPI and KOSDAQ came as market participants bought the KOSPI by selling the KOSDAQ amid unchanged currency volume

The KOSPI and KOSDAQ rose at the same time last Friday, as the rise of the two items was accompanied by an increase in money supply

How do I increase the volume of money?
The simplest thing to do is to have more loans
If market participants take out new loans and buy stocks, the KOSPI KOSDAQ is likely to rise
The rise in real estate in 2019 and the rise in the asset market, such as the rise in the stock market in 2021, cannot be achieved without an increase in debt
Because if the money that the market participants have is not borrowed, it cannot suddenly explode

In addition to loans, there is one more way to increase the money supply
You just need to increase the speed of the call
However, a short-term increase in currency volume cannot be increased by the speed of the currency alone without an increase in debt
Because when A said he sold 100 million won worth of shares to B, the money went from buyer B to A
A would have sold it because the stock price was too high, and B would have bought it because the stock price was too low,
There is no way for B, who thinks the stock price is cheap, to buy more stock (unless B gets more additional loans)
Of course, B may buy more in the future as his income increases, but this is more time-consuming than short-term.)

Of course, there’s one more way
If A, who sold the stock because he thought the stock price was high, changes his mind and buys the stock from B at a price higher than the price he sold, he can increase the price as the currency speed increases
(It’s a common occurrence in the stock market.)
However, if this is the case, the upward vitality will gradually decrease as the number of shares that can be bought for 100 million at a rising price will gradually decrease.)

After all, the rise in the asset market is bound to be accompanied by an increase in the money supply,
The debt-based modern monetary system is better able to respond to this increase in demand for money than the commodity currency-based monetary system