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> Firms are basically Equity+Debt, and because inflation wipes out the value of Debt, then the value of Equity mechanically increases I don’t think this holds
by grafmax 1y ago
> Firms are basically Equity+Debt, and because inflation wipes out the value of Debt, then the value of Equity mechanically increases
I don’t think this holds water as an explanation. The equity risk premium is basically zero.