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 …

For decades, the academic literature has focused on three survey measures of expected inflation: the Livingston Survey … models of forecasting inflation, the data are low frequency measures which appear anachronistic in the modern era of high … frequency and real-time data. I present a collection of 37 different measures of inflation expectations, including many …

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 …

value of German assets and the volatility of returns on them. Instead, it was inflation (and the fear of it) that is largely …

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 …

negative relations between asset returns and inflation are addressed. The generalized impulse response functions are adopted … negative relationship between stock prices and inflation. The level of real economic activity affects stock prices positively …

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 …

-have been carried out at no cost to output. After suggesting a new methodology that allows for long-lived effects and inflation … combination of circumstances-i.e. capital inflows, structural reforms and the peculiar recent inflation history-can explain that …

inflation. We introduce a small idiosyncratic component in firms’ marginal costs and let the economywide average marginal cost …