Inflation Accounting and Nonfinancial Corporate Profits: Financial Assets and Liabilities

John B. Shoven and

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

Jeremy Bulow

JB

Jeremy Bulow Stanford University

Discussants: Edward Gramlich and

EG

Edward Gramlich

William Fellner

WF

William Fellner American Enterprise Institute

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.