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Inflation is generalized increase of prices of goods and services in an economy, along with a corresponding fall in the purchasing value of money. The rate of inflation refers to the increase of the price of goods and services over time.
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Simple DCF model with inflation and taxes - Why do inflation and taxes only matter jointly?
$T=0$), inflation does not effect valuations. This makes total sense as inflation effects both the nominal discount rate and rental returns in the same way.
With no inflation (i.e. … But with inflation and taxes in the model, changing either one will impact valuations! This doesn't make much sense to me at all. …