ECO 203 Week 2 DQ 2 Who Benefits and Who Loses from Inflation? TO Buy the Tutorial Visit Our Website Who Benefits and Who Loses from Inflation? Inflation is an important policy issue because it causes a redistribution of income and wealth, and discourages saving and investment. Discuss how inflation affects borrowers and lenders, asset prices, and households on fixed incomes. Reference: Chapter 4, section 4.3: Gainers and Losers from Inflation.