The so-called Fed model postulates that the dividend or earnings yield on stocks should
equal the yield on nominal Treasury bonds, or at least that the two should be highly …

We provide empirical evidence of a novel liquidity-based transmission mechanism through
which monetary policy influences asset markets, develop a model of this mechanism, and …

In this book, the author draws from finance, psychology, economics, and other disciplines in
business and the social sciences, recognising that personal finance and investments are …

We develop a model of monetary exchange in over-the-counter markets to study the effects
of monetary policy on asset prices and standard measures of financial liquidity, such as bid …

The negative relationship between stock market P/E ratios and government bond yields
seems to have become conventional wisdom among practitioners. However, limited …

We develop a model of monetary exchange in bilateral over-the-counter markets to study the
effects of monetary policy on asset prices and financial liquidity. The theory predicts asset …

The negative relationship between market P/E ratios and government bond yields seems to
have become conventional wisdom among practitioners. Both (limited) empirical evidence …

Using historical data spanning almost 150 years, we examine whether there is a long-run
equilibrium relationship between the stock's earnings and bond yields. The novelty of our …

Using a comprehensive database of monthly US economic and price-based factors from
1871 to 2005, we investigate the relationship between the actual values and our estimated …

This paper analyzes the strong comovement between real stock and nominal bond yields at
generational frequencies. Using a stochastic overlapping generations model with cash-in …