Inflation and deflation in financial markets

Inflation and deflation in stock markets

The aim of this paper is to compare statistical properties of a bubble period with those of the anti-bubble period in stock markets. We investigate the statistical properties of daily data for the Nikkei 225 index in the 28-year period from January 1975 to April 2003, corresponded to the periods of bubbles and anti-bubbles. We divide the time series into two parts, the period of inflation (or b...

Inflation, Financial Markets, and Capital Formation

This explanation has been articulated in a number of recent papers. See, for example, Azariadis and Smith (forthcoming), Boyd and Smith (forthcoming), and Schreft and Smith (forthcoming and 1994). A consensus among economists seems to be that high rates of inflation cause " problems, " not just for some individuals, but for aggregate economic performance. There is much less agreement about what...

Commentary on "Inflation, Financial Markets, and Capital Formation"

Since my task is to critically evaluate the authors’ model, I will do so by asking, If our objective is to understand the connection between price stability and economic growth, would exploration of the kind of model that Sangmok Choi, Bruce D. Smith, and John H. Boyd present in this article be a high priority? My answer is, probably not. In the comments that follow, I lay out reasons for my re...

Customer Markets and Financial Frictions: Implications for Inflation Dynamics

We study the influence of financial frictions on the cyclical dynamics of producer prices. Empirical results show that the response of industry-specific PPI inflation to changes in aggregate financial conditions depends importantly on differences in the ease of access to external finance across industries: In industries in which firms face a high likelihood of financial constraints, inflation i...

Recent Trends in Inflation World Economy Financial Markets Demand and Supply Balance of Payments and External Financial Position Foreign Inflation Special Factors Influencing Inflation Future Inflation Scenarios References