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ECO 203 Week 2 DQ 2 Who Benefits and Who Loses from Inflation

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ECO 203 Week 2 DQ 2 Who Benefits and Who Loses from Inflation Powered By Docstoc
					 ECO 203 Week 2 DQ 2 Who Benefits and Who
           Loses from Inflation?
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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.

				
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