The purpose of this paper is to identify and measure the effects of inflation on corporation income taxes and on the net cash flows of business. Five ways in which inflation alters corporate taxable income are identified. The paper begins by showing how the use of historical costs rather than...

Inflation induces distortions in the economy, some of which are related to taxation while others would persist even if tax systems were made fully neutral with respect to rate of inflation. It is well known for instance that inflation induces individuals to hold less real cash balances and to...

The adjustment required to correct “generally accepted accounting principles” for the impact of inflation or devaluation, has been the subject of a protracted debate in accounting and taxation literature. As an outcome of that discussion, it is now generally recognized that inflation affects...

The Canadian economy experienced an increasing rate of inflation during the last half of the 1960s.The latter part of this period; interest rates reached levels higher than had been experienced for several decades. This study attempts to explain how the levels of interest rates are determined and...

This study identifies the ways that inflation has had a financial impact on the Canadian business sector. It also contains an estimation of the magnitude of each of these effects of inflation by industrial sector for the years 1965-1974. These individual effects are then aggregated to determine...

Phillips curves are central to discussions of inflation dynamics and monetary policy. New Keynesian Phillips curves describe how past inflation, expected future inflation, and a measure of real marginal cost or an output gap drive the current inflation rate. This paper studies the (potential)...

This paper examines two explanations of the observed positive relationship between inflation rates and saving rates in Canada and the United States. Several models are estimated using quarterly time series data from both countries, and the best of these are subjected to a variety of tests. One...

This paper was presented as the 2006 W.A. Mackintosh Lecture at Queen's University. I consider some of the leading arguments for assigning an important role to tracking the growth of monetary aggregates when making decisions about monetary policy. First, I consider whether ignoring money means...

This article provides an overview of the taxation of foreign source income in Canada, the United States and Mexico and provides some empirical estimates as an example of the relative impact of a series of changes in Canadian taxation of foreign source income on (a) the change in the Canadian tax...

Optimal monetary policy is studied in an environment in which money plays an essential role in facilitating exchange and aggregate shocks affect individual agents asymmetrically. Exchange may be conducted using either bank deposits (inside money) or fiat currency (outside money). A central...