Evidence on the portfolio holdings and transaction patterns of households suggests that the burden of inflation is not … this framework to study the distributional impact of inflation. At the aggregate level, our model economy behaves similarly … to standard monetary growth models within the representative agent abstraction. Inflation has, however, important …

in the presence of untradable inflation risk. Utility is defined over real wealth. Optimal forward positions are derived … risk premium and hence some risk taking. If untradable inflation risk is a monotone function of the tradable risk plus …

This paper studies the role of inflation in the determination of financial asset prices. We estimate an Intertemporal … Capital Asset Pricing Model à la Merton (1973), with inflation as an independent source of risk, for France and Germany. Our … the convergence process towards the single currency might have affected the role of inflation in the pricing of financial …

expected returns and betas. The numerical results of a Monte Carlo simulation show that in the CAPM slightly inefficient … the results suggest that the CAPM's pricing error is small when slightly inefficient, positively weighted proxies are used. …