RT Journal Article
SR Electronic
T1 Practical Applications of Information Flow and Expected Inflation: <em>An Empirical Analysis</em>
JF Practical Applications
FD Institutional Investor Journals
SP 1
OP 3
DO 10.3905/pa.6.2.287
VO 6
IS 2
A1 Bradford Cornell
YR 2018
UL https://pm-research.com/content/6/2/1.5.abstract
AB In Information Flow and Expected Inflation: An Empirical Analysis, published in the Winter 2017 issue of The Journal of Investing, Bradford Cornell, a professor of financial economics at the California Institute of Technology in Pasadena, California, reviewed data from January 1, 2003 through November 10, 2015 to determine what news prompts a significant move in the breakeven inflation rate (BEI). His analysis indicates that the BEI responds frequently to news stories about changes in Federal Reserve interest rate policy or news related to overall economic activity and aggregate demand. In contrast, announcements related to inflation data, money supply, or fiscal policy do not seem to consistently trigger significant shifts in the BEI.TOPICS: Security analysis and valuation, portfolio theory