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 …

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

corporate financial behavior. The analysis uses the information on inflation-adjusted income and assets that large firms were …