It is well known that when inflation is stochastic, Fisher's theoretical equation, according to which the nominal … interest rate is the sum of the real rate and the expected inflation rate, fails to hold. Under stochastic inflation, the … Fisher equation must be amended to include a compensation for inflation risk: the inflation risk premium. Consequently, this …

This paper analyses the persistence of inflation in post-communist Russia, with interest rate, exchange rate, and money … the context of Russia that the official interest rate has reacted more to exchange rate changes than reacting to inflation …, thereby keeping inflation as a persistent problem. This implies a need to have a "flexible targeting rule" for inflation so as …

This paper uses the Fisher equation relating the nominal interest rate to the real interest rate and expected inflation … returns from holding real assets and cash are equalized. When inflation expectations decline, the return to holding cash rises … out of a misplaced fear of inflation in the summer of 2008 when the economy was already contracting rapidly. Using stock …

There is a large body of literature on which assets are a good hedge against inflation. Most of these studies are … concentrated on US or other developed countries. The present study has a wider focus; it examines the inflation hedging properties … empirical results suggest that all the three classes of assets are not equally good as a hedge against inflation. Common stocks …

The belief that stock market provides hedge against inflation has been put to test by many researchers over the past … against inflation in short and long run respectively. The weak exogenity test under VECM has been used to establish the hedge … market provides hedge against inflation …

interest rates lead to changes to inflation in the opposite direction. I conclude that this is how credit crunches and monetary … tightening reduce inflation. I simulate different monetary policy through a variable inflation target. Wild swings in the target … kill the persistence in inflation, which may explain the absence of persistence under the Gold Standard. A stable target …

This paper is an attempt to trace the relationship between interest rates and rates of inflation in the economy of … rates and inflation for the monthly sample period of August 1996 to December 2003. The empirical results suggest that there … does not exist any co-movement of inflation with interest rates and the relationship between the variables is also not …