Monetary Regimes and the Relation Between Stock Returns and Inflationary Expectations

Publisher Website
Google Scholar
Abstract
This paper analyzes the impact of changes in monetary policy regimes on the relation between stock returns and changes in expected inflation. Post-war evidence from four countries reveals a direct link between these relations and the central banks' operating targets (i.e., money supply or interest rates). Specifically, the post-war negative relations between stock returns and changes in expected inflation are significantly stronger during interest rate regimes.

This publication has 3 references indexed in Scilit: