Gone are the days when inflation fears had receded under years of 'Great Moderation' in macroeconomics. The US subprime … world brought about a new order characterized by higher inflation volatility, severe commodity price shocks and uncertainty … over sovereign bond creditworthiness to name just a few. All of which tend to put in jeopardy both conventional inflation …

This study revisits and tests empirically the Portfolio Theory of Inflation (PTI), which analyzes how the effectiveness … (Bossone, The portfolio theory of inflation and policy (in)effectiveness, 2019). The PTI shows that when an economy is heavily … and policies aimed to stimulate output growth dissipate into domestic currency depreciation and higher inflation, with …

We examine the influence of Quantitative Easing (QE) on hedging effectiveness and performance (E&P) of international … negative with the Fed's Treasury holdings. E&P are higher for optimal versus full hedging during the QE versus pre-QE period … and differ for portfolios from developed and emerging countries. Results are robust using other hedging E&P measures and …

strategies. Findings suggest that currency-equity linkage provides better effectiveness of hedging and risk adjusted return …