Inflation and real stock prices

1 June 1997

journal article
research article
Published by Taylor & Francis in Applied Financial Economics

Vol. 7 (3) , 265-266
https://doi.org/10.1080/096031097333619

Abstract

A time series measure of expectations is used to demonstrate the existence of an inverse relationship between inflation and real stock prices, even after controlling for output shocks. This provides some evidence against Fama's famous conjecture (Fama, E., 1981, Stock returns, real activity, inflation, and money, American Economic Review, Sept, 545 - 565).

Keywords

INFLATION AND REAL STOCK PRICES

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