Live on Zoom on November 19, 2020
16:00 Hong Kong/Beijing/Singapore
17:00 Tokyo | 19:00 Sydney
08:00 London | 09:00 Tilburg
Inflation risk represents one of the most important economic risks faced by investors. In this Quantitative History Webinar, Fabio Braggion of Tilburg University will present his paper cowritten with Felix von Meyerinck (St. Gallen) and Nic Schaub (WHU), exploring how investors respond to inflation. Fabio and his coauthors introduce a unique dataset containing security portfolios of more than 2,000 clients of a German bank between 1920 and 1924, covering the famous German hyperinflation. In a within-person setting and controlling for the overall time trend, they find that investors buy less (sell more) stocks in times of rising local prices. This effect is more pronounced for less sophisticated investors. Their findings are consistent with investors being subject to money illusion.
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