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

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

Amidst the recent resurgence of inflation, this paper investigates the interplay of corporate profits and income … distribution in shaping inflation and aggregate demand within the New Keynesian framework. We derive a novel analytical condition …-demand fluctuations and inflation to be amplified by heterogeneity, profits have to be countercyclical--an implication that is at odds …

The dominant view of inflation holds that it is macroeconomic in origin and must always be tackled with macroeconomic … tightening. In contrast, we argue that the US COVID-19 inflation is predominantly a sellers' inflation that derives from … windfall profits and provide an impulse for further price hikes. (2) To protect profit margins from rising costs, downstream …

Financial reports present assets, liabilities, and earnings on a nominal basis (unadjusted for inflation). Using a … novel dataset of nearly a century of financial reports, this paper examines whether and how inflation affects the relation … between accounting earnings and stock market value, i.e., earnings relevance. On the one hand, inflation may decrease earnings …