inflation rate, with and with- out an increase in the risk premium on equities, was then simulated with a number of model … cost was 3 percentage points less than that for corporate capital) and the manner in which inflation magnifies it (the … finance instruments would overcome this reallocation but at the expense of corporate capital. Only a reduction in inflation or …

This paper investigates the effect of inflation uncertainty on the portfolio behavior of households and the equilibrium … structure of capitol market rates. The principal findings regarding portfolio behavior are: (1.) In the presence of inflation … uncertainty, households will have an inflation-hedging demand for assets other than riskless nominal bonds, which will be directly …

" tranches. This ratings inflation in turn allowed financial firms to engage in ratings arbitrage …

expected inflation, and the ""nominal-real covariance"" of inflation and the real interest rate with the real economy. The last …

This paper examines the association between inflation, monetary policy and U.S. stock market conditions during the … episodes and find evidence that inflation and interest rate shocks had particularly strong impacts on market conditions in the … postwar era. Disinflation shocks promoted market booms and inflation shocks contributed to busts. We conclude that central …

It is crucial that central banks and regulatory authorities be aware of effects of asset price inflation on the … backing loans fall in value. Rather than trying to gauge the effects of asset prices on core inflation, central banks may be …

optimizing governments might want to repress the financial sector. We also explain why inflation may be negatively related to … intervention is modeled through the inflation tax. Our model has the implication that financial development reduces money demand …. Hence, if the government allows for financial development the inflation tax base, and the chance to collect seigniorage, is …

as the manifestation of excessive monetary injections [Krugman-Flood-Garber], the fiscal theory of inflation [Sargent …-finance optimizing problem. We shows that under conditions similar to those which prevailed in Russia and Argentina prior to their …

fluctuations associated with these events are also discussed, as is their role in the recent surge of inflation, with a particular …

We construct a simple model in which high inflation imposes welfare costs because it affects the ability of the … financial sector to screen between high and low cost producers. Consumers search for a low price and inflation reduces the … inflation there is a switch from a separating equilibrium to a pooling equilibrium, where financial institutions become unable …