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Stock Returns and Inflation
Author(s) -
Crosby Mark
Publication year - 2001
Publication title -
australian economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 15
eISSN - 1467-8454
pISSN - 0004-900X
DOI - 10.1111/1467-8454.00119
Subject(s) - economics , stock (firearms) , monetary economics , inflation (cosmology) , real interest rate , price index , stock price , financial economics , econometrics , monetary policy , series (stratigraphy) , physics , theoretical physics , mechanical engineering , paleontology , engineering , biology
In this paper the relationship between inflation and stock returns in Australia is examined. It is found that increases in the price level reduce the real level of the stock price index. However, it is also found that the question of whether persistent increases in inflation affect real returns cannot be addressed using the Australian data.