Inflation uncertainty negatively impacts real stock returns in the long run.
The article looks at how inflation affects real stock returns using data from 16 countries. They found that expected inflation and inflation uncertainty don't have much impact in the short term, but can lower stock returns in the long term. Unexpected inflation, on the other hand, can have a positive short-term effect but a negative long-term impact on stock returns. These results help to clear up the confusion around how inflation influences stock market performance.