This paper examines the relation between variations in perceived inflation uncertainty and bond premia. Using the … average individual uncertainty about inflation forecasts since 1968. We show that this ex-ante measure of inflation … uncertainty differs importantly from measures of disagreement regarding inflation forecasts and other proxies, such as model …

This paper asks how inflation shocks affect the risk and return characteristics of different asset classes. For an … unanticipated increase in inflation expectations, returns on equities and on the euro (relative to the dollar) increase, while … conclusions: In response to inflation shocks, equities are the most attractive asset class, while bonds are the least attractive …

Some empirical evidence suggests that the expected real interest and expected inflation rates are negatively correlated … rate on T-bills and the inflation rate indicate that the Mundell-Tobin hypothesis does not hold in the long run for the …