This paper uses a new data set that better measures inflation uncertainty to investigate the effects of inflation and inflation uncertainty on economic growth. In the cross section of forty-four countries that the new data allows, inflation uncertainty has a significant negative impact on economic growth. Uncertainty performs better than inflation crisis as an explanatory variable of economic g...

In brane inflationary scenarios, the cosmological perturbations are supposed to originate from the vacuum fluctuations of the inflaton field corresponding to the position of the brane. We show that a significant, and possibly dominant, contribution to the curvature perturbation is generated at the end of inflation through the vacuum fluctuations of fields, other than the inflaton, which are lig...

In this paper, we study the potential of stocks as a hedge against inflation for different investment horizons. We show that stocks can be a hedge against inflation even if stock returns are negatively correlated with unexpected inflation shocks, and only moderately positively related to expected inflation. Depending on the investment horizon, the optimal hedge ratio can be either positive or n...

The purpose of this study is to investigate the impact of exchange rate misalignment on inflation persistence. For this purpose, Vector Auto Regression method and Markov Switching model is used for quarterly data during 1989:4 -2014:3. The results show that, the impact of liquidity growth and exchange rate misalignment on inflation persistence is positive. On the other hand, GDP growth has a ne...

This paper surveys the persian monetary crises due to economic sanctions and speculative attacks that leads to high inflation. Economic sanctions are associated with various forms of trade barriers and restriction on financial transactions. Among the most influential sanctions on Iran's oil export and central bank sanctions are noted that their Aims to reduce Iran's oil revenues and Devaluation...

We consider the problem of pricing inflation-linked caplets in a BlackScholes-type framework as well as in the presence of stochastic volatility. By using results on the pricing of forward starting options in Heston’s Model on stochastic volatility, we derive closed-form solutions for inflations caps which aim to receive smile-consistent option prices. Additionally we price options on the infla...

Several authors report regressions where inflation slows economic growth. These results have been criticized because of their sensitivity to the sample analyzed and because there does not appear to be a strong theoretical reason for believing that inflation significantly lowers growth. Indeed, researchers have suggested that inflation proxies for inflation uncertainty or poor economic policy. M...