Hey everyone! For my talk, we will be exploring the impact on monetary policies on inflation which then results into an impact on stock return and asset prices. This may sound more like an economic or finance talk, but let me assure you, a lot of math can be found within this topic. We will dive in the basics of each terms as well as exploring and explaining the relationship between each variables, with a significant emphasis on the relationship between inflation and stock prices. To help us understand the bigger picture, think about what happens in a period of recession, where the economy of the country is not doing so good. How does such economy bounce back to its prior state? How does this affect inflation? What happens to the value of our stocks?
Then we will also dive in empirical evidences of the relationship that will be describe and, if time permits, we may create a “fake” scenario that would result in more drastic change within an economy. Then, obviously, we will explore the larger application of such financial mathematics and focus on why is it so useful in the modern day world. I look forward to present this topic to you guys, and I hope you will enjoy it as much as I am enjoying researching about it! See you Wednesday!