Description: At our Houston meeting PD l, Donald D. Hester, Professor of Economics at University of Wisconsin, outlined a novel investment system aimed at protecting purchasing power of the lender’s funds from inflation’s ravages. This article is summary of that presentation.

Description: 20 years ago the author suggested that insurers invest a substantial part of their reserves in equities as an inflation hedge. Article discusses how equities have performed relative to inflation, in retrospect, and contemplates the future.