Journal of Financial Economics Vol. 1 No. 2 1974
Stock prices, inflation, and the term structure of interest rates
Abstract
In this article, the quantitative form of capital market equilibrium is derived for a multi-period economy in which (a) there are many consumption goods whose future prices are uncertain, and (b) the investment opportunities available to consumers include both common stocks and default-free bills of many different maturities. Particular emphasis is placed on consumer reaction to uncertainty about shifts in commodity prices and the term structure of interest rates and on the way one should expect to observe this reaction reflected in portfolio choices and equilibrium stock prices.
- DOI
- 10.1016/0304-405x(74)90002-6
- Volume
- 1
- Issue
- 2
- Pages
- 131-170
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref