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Who is Hurt and Who is Helped by Unanticipated Inflation

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Presentation on theme: "Who is Hurt and Who is Helped by Unanticipated Inflation"— Presentation transcript:

1 Who is Hurt and Who is Helped by Unanticipated Inflation
Lenders Money they are paid back is worth less. People on Fixed Incomes Their income can buy less each year; their purchasing power declines. Borrowers Money they pay is worth less. Workers with good COLA’s If inflation goes up by 3% their pay will go up automatically by more than that.

2 Who is Hurt and Who is Helped by Unanticipated Inflation
Employees Money they are paid is worth less Producers Costs of N, H, C, E ↑ which ↓ profits Consumers Pay more for goods and services Employers Money they pay is worth less.

3 Who is Hurt and Who is Helped by Unanticipated Inflation
In summary- If the amount of $ is fixed: In summary- If the amount of $ is fixed: People who have money coming in Lenders, Employees, Producers, People on Fixed Incomes, Consumers People who have money going out Borrowers, Employers!

4 Who is Hurt and Who is Helped by Unanticipated Inflation
In summary- If the amount of $ is variable: In summary- If the amount of $ is variable: People who have money coming in Lenders, Employees, Producers, Workers with good COLA’s People who have money going out Borrowers, Employers


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