I establish that inflation risk is priced in the cross section of stock returns: Stocks that have low returns during … inflationary times command a risk premium. I estimate a market price of inflation risk that is comparable in magnitude to the price … of risk for the aggregate market. Inflation is therefore a key determinant of risk in the cross section of stocks. The …

We study investors' perceptions of inflation through the lens of a high-frequency event study and document that they … have a stagflationary view of the world. In response to higher-than-expected inflation, investors expect firms' nominal … even decline, with increases in nominal yields offset by larger increases in inflation expectations. Consistent with a …

We study how investors respond to inflation combining a customized survey experiment with trading data at a time of … historically high inflation. Investors' beliefs about the stock return-inflation relation are very heterogeneous in the cross … section and on average too optimistic. Moreover, many investors appear unaware of inflation-hedging strategies despite being …

U.S. stocks' response to inflation surprises is, on average, robustly negative. Stocks' response to positive inflation … surprises shows much more pronounced time-series variability than their response to negative inflation surprises. In our sample …, stocks react significantly to positive inflation surprises only when there is a contemporaneous change in monetary policy …

We use an agent-based computational approach to show how inflation can worsen macroeconomic performance by disrupting … the mechanism of exchange in a decentralized market economy. We find that increasing the trend rate of inflation above 3 … model ; inflation ; price dispersion ; firm turnover …

We use an agent-based computational approach to show how inflation can worsen macroeconomic performance by disrupting … the mechanism of exchange in a decentralized market economy. We find that increasing the trend rate of inflation above 3 … significant negative effect of trend inflation on output even when such an effect exists in reality …

We use an agent-based computational approach to show how inflation can worsen macroeconomic performance by disrupting … of inflation above 3 percent has a substantial deleterious effect, but lowering it below 3 percent has no significant … may fail to detect a significant negative effect of trend inflation on output even when such an effect exists in reality …

The cost of the FED maintaining a low target level of inflation is measured by Lucas (2000) and Ireland (2009) as the … welfare cost of inflation based on money demand. Their estimates require stability of the money demand function. Ireland finds … inflation to the post-Volcker period …

This chapter aims at assessing the long-run determinants and the short-run dynamics of inflation in each country … cointegrating VAR approach, which allows for a structural long-run analysis of inflation determinants along with an accurate … inflation differ in the countries belonging to the Euro Area, but also that cost-push factors have a considerable role in …

This study adopts the long-run structural VAR approach to analyse the determinants of inflation in the Euro Area … economy over the period 1985:1-2003:2. Theoretical relationships link inflation to markup and output gap, respectively. The … short-run dynamic properties of inflation are investigated using a structural VECM. Inflation is explained by a mixture of …