We show that firms' nominal required returns to capital (i.e., their discount rates) are sticky with respect to expected inflation. Such nominally sticky discount rates imply that increases in ...

Largely ignored amid the noise about the Lifetime Isa after the last Budget, the reduced discount rate for public sector schemes could also put extra costs on the Local Government Pension Scheme.

The government has proposed aligning the discount rate review periods with the valuation cycles of public service pension schemes, and is taking forward reforms to the cost-cap mechanism first ...