no
Inflation: 1. Inflation redistributes income in the favor of the rich and the profiteer class at the cost of the poor masses - the wage-earners and consumers. 2. Through its redistributive effects, inflation increases the inequality of income in the community by widening the gulf between higher income groups and lower income groups. The rich become richer and the poor become poorer during inflation. 3. Inflation is regressive in effect in the sense that it hits hard those who are already weak and cannot protect themselves. It is specially the middle class which suffers most due to inflation. Deflation: 1. Deflation means falling prices in general which adversely affect the marginal efficiency of capital. Consequently, investment volume tends to contract causing unemployment to increase. 2. Deflation paves the way for depression. In a depressionary phase, economic activity contracts, scale of production is curtailed, output shrinks no new investment if forthcoming; on the contrary, investment is curtailed. 3. By reducing aggregate income, it also pauperizes every group in society. It inflicts on society the harsh punishment of mass unemployment.
Debtors.
A debtor would favour inflation; the debt would be repaid with money which is worth less than when it was borrowed.
A monetarists would favor a policy where the government had a limited role in the control of the circulation of money. They believe that the money supply should not be excessively expanded so it does not cause inflation.
no
Inflation: 1. Inflation redistributes income in the favor of the rich and the profiteer class at the cost of the poor masses - the wage-earners and consumers. 2. Through its redistributive effects, inflation increases the inequality of income in the community by widening the gulf between higher income groups and lower income groups. The rich become richer and the poor become poorer during inflation. 3. Inflation is regressive in effect in the sense that it hits hard those who are already weak and cannot protect themselves. It is specially the middle class which suffers most due to inflation. Deflation: 1. Deflation means falling prices in general which adversely affect the marginal efficiency of capital. Consequently, investment volume tends to contract causing unemployment to increase. 2. Deflation paves the way for depression. In a depressionary phase, economic activity contracts, scale of production is curtailed, output shrinks no new investment if forthcoming; on the contrary, investment is curtailed. 3. By reducing aggregate income, it also pauperizes every group in society. It inflicts on society the harsh punishment of mass unemployment.
inflation
Debtors.
Inflation generally favors those with debt, because the higher prices will drive wages higher and enable a fixed debt to be more quickly paid off.This is also especially apparent where borrowers can borrow against a higher value of property (e.g. homes) and realize income from the inflated assessment.Inflation harms lenders and savers because loans and savings do not directly appreciate from inflation.
A debtor would favour inflation; the debt would be repaid with money which is worth less than when it was borrowed.
Creditors
sales taxes
Financial hawks favor low inflation over high economic growth, and want interest rates set high to keep inflation low. Financial doves prefer low interest rates and believe inflation has a minimal impact on society.
the wealthy would carry the greatest tax burden
wealth or financial success
wealth or financial success