We propose a search and matching model that can account for a long-run joint relationship between inflation, unemployment, and equity prices. The model predicts the following longrun joint relationship: (i) a positive relationship between inflation and unemployment; (ii) a negative relationship...

This study documents robust empirical evidence that a significant joint relationship between the long-term trends of inflation, unemployment, and equity prices exists in the post-WWII U.S. data: (i) a positive relationship between inflation and unemployment; (ii) a negative relationship between...

We explore how investor attention paid to dangerous nuclear tests in an adjacent country influences financial market outcomes. To measure the attention paid to North Korean nuclear threats, we introduce a weekly Google search volume index for keywords on North Korean nuclear events. Using a...

This paper examines the effects of global liquidity expansion on advanced and emerging economies by using panel VAR methodology. The results show that global liquidity expansion tends to boost economy by increasing GDP growth and stock prices. However, we find that the effects are asymmetric....

Korea is aging at a rapid pace, causing concern about the resulting socio-economic impacts. This study analyzes the expected changes in the financial markets and macroeconomic changes resulting from aging and seeks possible policy measures to mitigate the negative impacts of these changes. The...