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Inflation harms wage earners farrrr more than capital holders. Capital holders can put it into assets that rise with inflation. IMO it's one of the driving fact
by aceon48 9y ago
Inflation harms wage earners farrrr more than capital holders. Capital holders can put it into assets that rise with inflation. IMO it's one of the driving factors of inequality of the past few decades.
Those with capital / assets can leverage up, borrow more money, and then pay it back with lesser inflated dollars.
- JamesBarney 9y agoUnexpected inflation moves money from people with nominal assets to people with nominal debts. Basically the very rich(who hold most nominal assets like bonds) to everyone who has a mortgage. Also the IMF's stance on inflation and inequality is moving from hyperinflation to sustainable inflation leads to reduced inequality but there aren't advantages to moving to a lower inflation than that.