), inflation and money supply growth, while oft studied, is one that remains unclear. We argue that the nature of the relation …. Notably, a predominantly negative correlation with bond yields and inflation becomes positive, while the opposite is true for … power switches temporarily to positive around economic shocks. This suggests that higher yields, inflation and money growth …

This paper focuses on the predictive role of inflation and interest rates in forecasting stock returns. We report … economically significant in-sample evidence that stock returns are predictable using cyclical components of inflation and interest … the fact that both inflation and interest rates contain stochastic trends. Accounting for changes in trend inflation (and …