Inflation and financial market performance: what have we learned in the last ten years?

John H. Boyd and Bruce Champ

No 317, Working Papers (Old Series) from Federal Reserve Bank of Cleveland

Abstract: The last decade has witnessed a great deal of theoretical and empirical research on the relationships between inflation, financial market performance, and economic growth. This paper provides a survey of that literature and presents new cross-country empirical results on this topic. We find that inflation is negatively associated with banking industry size, real returns on financial assets, and bank profitability. We also discover a positive relationship between asset return volatility and inflation.

Date: 2003
New Economics Papers: this item is included in nep-fin, nep-fmk, nep-mac and nep-mfd
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Citations: View citations in EconPapers (31)

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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedcwp:0317

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DOI: 10.26509/frbc-wp-200317

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