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 …

perspective on current inflation. Within this perspective, some contributions argued for a profit-driven inflation, while others …This study contributes to the ongoing discussion surrounding the recent upswing in inflation by presenting an … analytical framework and empirically examining inflation trends in Italy. Its primary aim is to unveil the underlying causes …

, consistent with the evidence, increases with inflation. Because we assume that firms sell multiple products and choose how many … inflation accelerator-a feedback loop between inflation and the fraction of price changes-that significantly increases the slope … of the Phillips curve during periods of high inflation. Applied to the U.S. time series, our model predicts that the …