case of prevailing inflation, there is a mismatch between the nominal interest rate that is a discounting factor for all …

This paper revisits the equilibrium and welfare effects of long-run inflation in the presence of distortionary taxes … and financial constraints. Expected inflation interacts with corporate taxation through the deductibility of i) capital … expenditures at historical value and ii) interest payments on debt. Through the first channel, inflation increases firms’ taxable …

case of prevailing inflation, there is a mismatch between the nominal interest rate that is a discounting factor for all …

This paper revisits the equilibrium and welfare effects of long-run inflation in the presence of distortionary taxes … and financial constraints. Expected inflation interacts with corporate taxation through the deductibility of i) capital … expenditures at historical value and ii) interest payments on debt. Through the first channel, inflation increases firms' taxable …

This paper revisits the equilibrium and welfare effects of long-run inflation in the presence of distortionary taxes … and financial constraints. Expected inflation interacts with corporate taxation through the deductibility of i) capital … expenditures at historical value and ii) interest payments on debt. Through the first channel, inflation increases firms' taxable …