When Prices Go Wild: The Impact of High Inflation on Valuation, Damages and Disputes
August 18, 2023DownloadsDownload Article
This chapter is part of the Americas Arbitration Review was first published on July 28, 2023. The entire publication is available at: https://globalarbitrationreview.com/review/the-arbitration-review-of-the-americas/2024/article/when-prices-go-wild-the-impact-of-high-inflation-valuation-damages-and-disputes
After more than two decades of low and stable prices, the past years have witnessed a reappearance of high inflation.
This article discusses the various implications of (high) inflation on the different approaches for the valuation of companies.
Taking examples from Latin America, this article also examines the impact of inflation on the assessment of damages, and how inflation brings more economic relevance to some of the issues which tribunals need to consider in awarding damages, such as the date of assessment and pre-award interest rate.
Lastly, the article illustrates the various mechanisms by which high inflation can be in itself the cause of disputes.
Reproduced with permission from Law Business Research Ltd.
Most Popular Insights
- 10 Global Cybersecurity Predictions for 2024
- Global CFO Survey 2024
- Bridging the Gap Between Artificial Intelligence Implementation, Governance, and Democracy: An Operational and Regulatory Perspective
- The Power of Positive Paranoia: A Key Trait for Every CEO and General Counsel in 2024
- A Targeted Approach is Key to Implementing AI