We study how investors respond to inflation combining a customized survey experiment with trading data at a time of … historically high inflation. Investors' beliefs about the stock return-inflation relation are very heterogeneous in the cross … section and on average too optimistic. Moreover, many investors appear unaware of inflation-hedging strategies despite being …

The US and other advanced countries suffered bursts of severe inflation in 2021 and the first half of 2022, followed by … declines of inflation later in 2022, in some countries. In times of high volatility of price determinants--cost and … productivity--inflation can jump upward and fall downward at high speed, contrary to the uniformly sticky behavior associated with …

This paper re-examines the effects of nominal contracts on the relationship between unanticipated inflation and … individual stock's rate of return. This study differs in three main ways from previous research. First, announced inflation data … are used to examine the effects of unanticipated inflation. Second, a different specification is used to obtain more …

mechanically, buying and selling bonds in accordance with a Taylor policy rule based on expected inflation. In this setting we show … that stock market returns are much less than one-for-one related to inflation over a one-year holding period, which means …

The past half-century has seen major shifts in inflation expectations, how inflation comoves with the business cycle … on how inflation is priced in financial markets. Not all inflation episodes are created equal. Using in a New Keynesian … model, we show how "good" inflation can be linked to demand shocks and "bad" inflation to supply shocks driving the economy …

We study the impact of the Covid-19 pandemic on Euro Area inflation and how it compares to the experiences of other …-output linkages, affecting both trade and inflation. 2) Inflation can be higher under sector-specific labor shortages relative to a … domestic aggregate demand shocks in explaining Euro Area inflation over 2020-21. 4) International trade did not respond to …

policy on U.S. inflation over the Dec-2019 to June-2022 period. Model calibrations show that aggregate demand shocks explain … roughly two-thirds of total model-based inflation, and that the fiscal stimulus contributed half or more of the total …

explosion of inflation during his administration (above 1,500% on a six-month annualized measure) was predictable, and that the … that the combination of runaway inflation, shortages, and black markets generated major disaffection among the middle class …

We measure the heterogeneous welfare effects of the recent inflation surge across households in the Euro Area. A simple … framework illustrating the numerous channels of the transmission mechanism of surprise inflation to household welfare guides our …; (ii) this inflation episode resembles an age-dependent tax, with the elderly losing up to 20%, and roughly half of the 25 …

We study the redistributive effects of inflation combining administrative bank data with an information provision … experiment during an episode of historic inflation. On average, households are well-informed about prevailing inflation and are … concerned about its impact on their wealth; yet, while many households know about inflation eroding nominal assets, most are …