Inflation is on everyone's mind—but did you know the market reacts differently depending on how inflation is perceived? In this deep dive, we explore groundbreaking research that uncovers the distinction between good inflation (rising prices alongside strong growth) and bad inflation (higher costs without economic expansion).

Join us as we break down how inflation expectations impact stocks, bonds, and credit default swaps, and why investor sentiment plays a crucial role in shaping financial markets. Plus, we’ll reveal how subtle shifts in inflation swaps and Federal Reserve signals can ripple through asset prices—sometimes in surprising ways.

If you're an investor, economist, or just curious about how inflation affects your portfolio, this episode is a must-listen!

Find the full research paper here: https://community.quantopian.com/c/community-forums/good-inflation-bad-inflation-implications-for-risky-asset-prices

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Quant Radio is an AI-generated podcast, intended to help people develop their knowledge and skills in Quant finance. This podcast is not intended to provide investment advice.