Inflation versus Deflation and their Impact on Stock Markets
Inflation versus Deflation and their Impact on Stock Markets

Author(s): Jana Kováčová, Katarína Gachová, Božena Chovancová
Subject(s): Evaluation research, Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: market; inflation; interest rate; quantitative easing;
Summary/Abstract: Many previous studies associated with long-term monitoring of equity returns data and inflation led to the conclusion that, historically, stock prices failed to keep up with inflation and the rate of return on shares was negatively correlated with the rate of inflation. When examining the impact of inflation on stock prices, several aspects can be applied, being an important element the different levels of expected inflation.

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