BPEA | 1976 No. 1

Inflation Accounting and Nonfinancial Corporate Profits: Financial Assets and Liabilities

John B. Shoven and
Shoven headshot
John B. Shoven Charles R. Schwab Professor of Economics - Stanford University, and NBER
Jeremy Bulow
Jeremy Bulow Stanford University

1976, No. 1

THIS ARTICLE is the second of two complementary papers by the authors
concerning inflation accounting and nonfinancial corporate profits. The
companion piece, which appeared in BPEA, 3:1975, discussed definitions
of real corporate profits and suggested as a meaningful and attractive
candidate the accrual of purchasing power by equity holders. A second
definition, based on the concept of maintaining capital intact, was presented
as an alternative.