The Transition to Net Zero: A Challenge for Central Banks
Highlighting the potential consequences for inflation in the euro area over the transition period to net zero, and implications for monetary policy.
In its latest research the team explores the dynamics that higher inflation introduces into the broader economy and ultimately, asset returns. To evaluate the potential impact of higher inflation on portfolio returns, the team considers historical and forward-looking portfolio outcomes, assuming inflation remains elevated for the next five years. Analysis considers traditional allocations to equities and bonds along with larger allocations to asset classes with a positive direct exposure to inflation, such as commodities and real estate, given their historical strength in high-inflation environments.
You May Also Like
Can The Fed's Rate Hikes Stem The Inflationary Tide?
PGIM Quantitative Solutions shares their latest views on the most recent rate hike.