Inflation and Financial Market Performance: What Have We Learned in the Last Ten Years?

53 Pages Posted: 2 Nov 2007

See all articles by John H. Boyd

John H. Boyd

University of Minnesota - Twin Cities - Carlson School of Management

Bruce A. Champ

Federal Reserve Bank of Cleveland

Date Written: December 2003

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.

Keywords: inflation, financial markets, economic growth, banking, financial assets

JEL Classification: E40, E44, O16

Suggested Citation

Boyd, John H. and Champ, Bruce A., Inflation and Financial Market Performance: What Have We Learned in the Last Ten Years? (December 2003). FRB of Cleveland Working Paper No. 03-17, Available at SSRN: https://ssrn.com/abstract=1026081 or http://dx.doi.org/10.2139/ssrn.1026081

John H. Boyd (Contact Author)

University of Minnesota - Twin Cities - Carlson School of Management ( email )

19th Avenue South
Minneapolis, MN 55455
United States
612-624-1834 (Phone)

Bruce A. Champ

Federal Reserve Bank of Cleveland ( email )

PO Box 6387
Cleveland, OH 44101-1387
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
437
Abstract Views
1,735
rank
72,116
PlumX Metrics