TY  - UNPD
A1  - Schnorpfeil, Philip
A1  - Weber, Michael
A1  - Hackethal, Andreas
T1  - Inflation and trading
N2  - We study how investors respond to inflation combining a customized survey experiment with trading data at a time of historically high inflation. Investors' beliefs about the stock return-inflation relation are very heterogeneous in the cross section and on average too optimistic. Moreover, many investors appear unaware of inflation-hedging strategies despite being otherwise well-informed about inflation and asset returns. Consequently, whereas exogenous shifts in inflation expectations do not impact return expectations, information on past returns during periods of high inflation leads to negative updating about the perceived stock-return impact of inflation, which feeds into return expectations and subsequent actual trading behavior.
T3  - SAFE working paper - 419 
KW  - Belief Formation
KW  - Field Experiment
KW  - Inflation
KW  - Trading
Y1  - 2024
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/71573
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-715739
UR  - https://ssrn.com/abstract=4838014
N1  - Funding: Data Science Institute
N1  - Funding: Inquire Europe
N1  - Funding: Leibniz Institute for Financial Research SAFE
PB  - SAFE
CY  - Frankfurt am Main
ER  -