Skip to:
  1. Main navigation
  2. Main content
  3. Footer
Working Paper

Inflation and Financial Market Performance

In this paper we investigate the empirical association between inflation and the functioning of an economy’s financial system. We find substantial evidence that inflation is negatively correlated with financial market performance, and, in addition, we find that the relationship between inflation and financial development exhibits significant non-linearities.

Suggested Citation

Boyd, John, Ross Levine, and Bruce Smith. 1996. “Inflation and Financial Market Performance.” Federal Reserve Bank of Cleveland, Working Paper No. 96-17.