### Q1. What is the central mechanism linking inflation to the finance-growth nexus?

**When firms finance using long-term nominal debt issued by financial intermediaries, changes in expected inflation lead to a wealth transfer across sectors.**

### Q3. Is there empirical support, and how does it connect to recent events?

**The authors provide empirical evidence supporting their inflation transmission mechanism and connect their findings to the banking stress of 2023.**

Inflation Risk and the Finance-Growth Nexus