The past half-century has seen major shifts in inflation expectations, how inflation comoves with the business cycle … on how inflation is priced in financial markets. Not all inflation episodes are created equal. We therefore discuss asset … pricing implications of "good” and "bad” inflation from the vantage point of macroeconomic shocks that drive the economy. We …

The past half-century has seen major shifts in inflation expectations, how inflation comoves with the business cycle … on how inflation is priced in financial markets. Not all inflation episodes are created equal. Using in a New Keynesian … model, we show how “good” inflation can be linked to demand shocks and “bad” inflation to supply shocks driving the economy …

There is a large body of literature on which assets are a good hedge against inflation. Most of these studies are … concentrated on US or other developed countries. The present study has a wider focus; it examines the inflation hedging properties … empirical results suggest that all the three classes of assets are not equally good as a hedge against inflation. Common stocks …