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BPEA Article

Inflation Accounting and Nonfinancial Corporate Profits: Financial Assets and Liabilities



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.

John B. Shoven

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


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