Expected inflation rates impact stock market volatility in global financial markets.
The article explores how different financial factors are related in complex ways. It looks at models to understand interest rates and stock market behavior. The researchers found that certain models can predict interest rate movements well, but economic gains are small. They also discovered that expected inflation rates have stayed low, supporting the central bank's decision to keep interest rates low. Additionally, they found that stock market volatility can be predicted by looking at historical data from different countries.