Kyriacou, Kyriacos; Madsen, Jakob B.; Mase, Bryan - In: Journal of Economic Studies 33 (2006) 5, pp. 344-356
investigate the relationship between the equity premium and inflation. Findings – This paper shows that the equity premium over … the past 132 years has been significantly positively related to the rate of inflation and, therefore, has resulted in an … performance of bonds and stocks during inflationary periods. The relatively poor performance of bonds during periods of inflation …