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 …

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 …

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

This paper proposes a dynamic stochastic general equilibrium model that endoge­nously generates inflation persistence … contrast with traditional sticky price models, the framework yields inflation inertia, a delayed effect of monetary policy … shocks on inflation, and the observed "reverse dynamic" correlation between inflation and economic activity …

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

Using daily inflation data from the Billion Prices Project [Cavallo and Rigobon (2016)], we show how temporal … private agents and the central bank (the “Fed information effect”). We find that the adverse response of daily inflation to … and an unobserved components model of inflation dynamics. To reconcile how one can obtain a sizable adverse response with …

inflation pressures in the future, as well as by possible pressures on its nominal exchange rate depreciation …

What is the probability of high inflation; how high, when? These questions are important to all investors since even … characterizes this as The War On Savers. Higher inflation is possible, at 4% or more, with even worse effects. There are heated … debates about the probability and timing of high inflation, but our review of the extensive literature reveals no reliable way …