On Thursday, March 10, Alexi Savov and Itamar Drechsler joined Markus’ Academy for a lecture on Investing in a High Inflation Environment. Savov is an Associate Professor of Finance at New York University’s Stern School of Business. Drechsler is the Ervin Miller-Arthur M. Freedman Professor, Professor of Finance and Co-Director of the Rodney L. White Center for Financial Research at the University of Pennsylvania, Wharton.
Watch the full presentation below. You can also watch all Markus’ Academy webinars on the Princeton BCF YouTube channel.
[0:00] Introductory Remarks
[8:33] Asset and Inflation Theory 101
[18:22] Why did stocks struggle during the Great Inflation?
[27:12] Regulation Q
[33:07] Credit Crunches and Stagflation
[44:39] Credit Crunches and the Stock Market
[48:20] Fears for now and future?
[49:36] The Fed, Inflation, and the Fed Put