Inflation and interest rates impact stock prices, revealing new economic insights.
The article examines how inflation and interest rates affect stock prices from 1999 to 2016. They found that inflation rates are linked to lower stock prices, while real interest rates are linked to higher stock prices. Changes in interest rates and inflation rates can predict changes in stock prices. This study adds new insights by separating inflation from real interest rates and showing a negative relationship between stock prices and inflation rates.