This episode of The Pie features a panel discussion following a talk from Raghuram Rajan, the Katherine Dusak Miller Distinguished Service Professor of Finance at Chicago Booth, about his book “Monetary Policy and Its Unintended Consequences.” The panel included Charles Evans, former president of the Federal Reserve Bank of Chicago, and was moderated by Randall Kroszner, the Norman R. Bobins Professor of Economics at Chicago Booth and former Governor of the Federal Reserve System.

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Research Briefs·Jun 17, 2024

Inflation and Trading

Michael Weber, Philip Schnorpfeil, and Andreas Hackethal
Beliefs about how inflation impacts asset returns vary widely across investors, who are often overly optimistic. Information about past returns during periods of high inflation causes investors to update their beliefs, which feeds into their return expectations and subsequent trading...
Topics: Monetary Policy
Research Briefs·Jun 12, 2024

Discount Factors and Monetary Policy: Evidence from Dual-Listed Stocks

Quentin Vandeweyer, Minghao Yang, and Constantine Yannelis
Surprise changes in US monetary policy rates directly affect asset prices, with a 100-basis point surprise cut resulting in a 30-basis point increase in the ratio of stock prices over 5 days; this effect grows after the initial announcement because...
Topics: Monetary Policy
Research Briefs·Apr 16, 2024

Sticky Discount Rates

Masao Fukui, Niels Gormsen, and Kilian Huber
Firms often keep their nominal discount rates constant even in the face of changing inflation expectations. Increases in expected inflation therefore lower firms’ real discount rates and raise real investment.
Topics: Monetary Policy