NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Inflation Illusion, Credit, and Asset Pricing

Monika Piazzesi, Martin Schneider

NBER Working Paper No. 12957
Issued in March 2007

---- Acknowledgements -----

For comments and suggestions, we thank Olivier Blanchard, Markus Brunnermeier, John Campbell, Martin Feldstein, and participants at the NBER Asset Pricing and Monetary Policy Pre-Conference in November 2005 and the Conference in May 2006. We also thank Pedro Gete for excellent research assistance. The views expressed herein are those of the authors and not necessarily those of the Federal Reserve Bank of Minneapolis or the Federal Reserve System. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.

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