Dutch paper explores information content of asset prices for inflation
Working paper finds high asset prices can indicate either high or low inflation, though most commonly it is high
High asset prices can be a "significant indicator" of low inflation, though more often they are signalling high inflation, a working paper published by The Netherlands Bank finds.
In The signalling content of asset prices for inflation: Implications for Quantitative Easing, Leo de Haan and Jan Willem van den End investigate the information content of a range of financial variables.
These include equity and house prices, private credit volumes, and sovereign and corporate bond yields for 11
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