We show that bond risk-premia rise with uncertainty about expected inflation and fall with uncertainty about expected … inflation. The model simultaneously accounts for bond return predictability and violations of uncovered interest parity in …-neutral effects of inflation on growth are important to account for these aspects of asset markets …

We show that bond risk-premia rise with uncertainty about expected inflation and fall with uncertainty about expected … inflation. The model simultaneously accounts for bond return predictability and violations of uncovered interest parity in …-neutral effects of inflation on growth are important to account for these aspects of asset markets …

.S. government. We use our estimates to account for contributions to the evolution of the debt to GDP ratio made by inflation, growth …