New Investment Data Have Been Reported by Researchers at Johns Hopkins University (Measuring Transitory Inflation: Implications for Monetary Policy and Stock Market Volatility): Investment

Economics Daily Report

2025 MAR 20 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Investigators discuss new findings in Investment. According to news reporting out of Baltimore, Maryland, by NewsRx editors, research stated, “We present a methodology for developing a transitory inflation (TI) measure that captures persistent deviations from mean inflation, distinguishing it from underlying inflation. First, we analyze the decay rate of TI as it reverts to stationary inflation, finding that convergence typically ranges between two to four years.”

Our news journalists obtained a quote from the research from Johns Hopkins University, “We then examine the impact of TI on monetary policy, demonstrating that a surge in TI increases monetary policy uncertainty and is followed by interest rate hikes by the Federal Reserve. Furthermore, we investigate how TI influences key stock market outcomes and find its impact varies across sectors and by market capitalization; overall, higher TI is associated with lower asset prices, especially for small-cap stocks, and higher stock market volatility.”

According to the news editors, the research concluded: “We also identify rising oil prices as a significant driver of TI.”

This research has been peer-reviewed.

For more information on this research see: Measuring Transitory Inflation: Implications for Monetary Policy and Stock Market Volatility. Journal of International Money and Finance, 2025;153. Journal of International Money and Finance can be contacted at: Elsevier Sci Ltd, 125 London Wall, London, England. (Elsevier - www.elsevier.com; Journal of International Money and Finance - http://www.journals.elsevier.com/journal-of-international-money-and-finance/)

Our news journalists report that additional information may be obtained by contacting Frank J. Fabozzi, Johns Hopkins University, Carey Business Sch, 100 Int Dr, Baltimore, MD 21202, United States. Additional authors for this research include Yosef Bonaparte and Matt Peron.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.jimonfin.2025.103284. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.