This paper provides empirical evidence on the extent to which the inverse relationship between real stock returns and inflation in recent years is causal or spurious. The results indicate that this relationship is spurious and can be explained by the inverse correlation between unexpected inflation and unexpected real output. The expected and unexpected real output and inflation variables are generated from the ASA/NBER Business Outlook Surveys.
|Original language||English (US)|
|Number of pages||7|
|State||Published - Jan 1 1986|
All Science Journal Classification (ASJC) codes
- Business, Management and Accounting(all)
- Economics and Econometrics