Central bank policies not driving stock returns during inflation, study finds.
The study looked at how stock returns are affected by inflation. They explored if the central bank's actions, like printing money or adjusting interest rates, play a role in this relationship. By analyzing how people expect stock returns to change, they found that the central bank's actions don't consistently explain the link between stock returns and inflation. They also found that printing money doesn't seem to be the main reason why stocks perform differently during times of inflation.