The other 2 replies seem accurate, but I'll also reply. The future earnings should go up with inflation, but not the discount rate. The government adjusts thei

The other 2 replies seem accurate, but I'll also reply. The future earnings should go up with inflation, but not the discount rate. The government adjusts their interest rate to maintain the rate of inflation around 2% or so. The government interest rate is often around 5%, but can vary from 0 to 20%. The discount rate (or technically the cost of capital) is the gov't interest rate plus 4% or so (the higher the better for investors).