Please use this identifier to cite or link to this item:
|Scopus||Web of Science®||Altmetric|
|Title:||Inflation and asset returns|
|Author:||Barnes, Michelle L.|
Boyd, John H.
Smith, Bruce D.
|Citation:||European Economic Review, 1999; 42(4):737-754|
|Barnes, Michelle; Boyd, John H; Smith, Bruce D|
|Abstract:||Sustained inflation is detrimental to long-run growth and the financial system. A recent theoretical literature suggests that high inflation implies low real returns on assets. These low returns exacerbate informational frictions, interfering with the functioning of financial markets and the allocation of investment. We investigate the plausibility of an inverse relationship between inflation and real returns. Inflation and nominal equity returns are negatively correlated or uncorrelated for all low-to-moderate inflation economies examined. Safe nominal rates of return and inflation are only weakly positively correlated. However, for high inflation economies inflation and nominal returns are strongly positively correlated.|
|Appears in Collections:||Economics publications|
Files in This Item:
There are no files associated with this item.
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.