This paper discusses a crucial cause of the failure of share prices to rise during a decade of substantial inflation … indicates that this inverse relation between higher inflation and lower share prices during the past decade was not due to … chance or to other unrelated economic events. On the contrary, an important adverse effect of increased inflation on share …

This paper discusses the effects of the interaction between inflation and the taxation of capital income. The principal … conclusions are: (1) Inflation substantially increases the total effective tax rate on the income from capital used in the … between inflation and existing tax rules contributed to the fall in the ratio of share prices to real pretax earnings, or …

This detailed examination of the effect of inflation on the taxation of capital used by nonfinancial corporations … additional taxes that lenders pay slightly exceed the tax saving by corporate borrowers. Our calculations indicate that inflation …

because of the distorting effect of inflation. A detailed analysis shows that the distortion was greatest for middle income …

The present paper analyses the effect of the interaction between tax rules and inflation on the size and allocation of … show that, with current U.S. tax laws, an increase in the rate of inflation reduces the equilibrium amount of business … inflation lowers the real net-of-tax rate of return to the provider of business capital. In a richer model than the current one …

Much of the recent discussion about the relation between pensions and inflation has emphasized the adverse impact that … the un-expected rise in inflation has had on pension recipients and on the performance of pension funds. In contrast, the … present paper focuses on the way that pensions are likely to evolve in response to the expectation of continued inflation in …

sustained inflation are small relative to the costs of unemployment. If a temporary reduction in unemployment causes a permanent … increase in inflation, the present value of the resulting future welfare costs may well exceed the temporary short-run gain …. Previous analyses have underestimated the cost of a permanent increase in the inflation rate because they have ignored the …

calculating the gain from price stability, the paper emphasizes the distortions caused by the interaction of inflation and capital … income taxes. Because inflation exacerbates the tax distortions that would exist even with price stability, the annual … deadweight loss of a two percent inflation rate is a surprisingly large one percent of GDP. Since the real gain from shifting to …