 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
| arman zajic, critical preference, debi mazar, cheryl hines, 504boyz — ( moving things lyrics ), indies, usertalk:24.147.248.130, indie, administration, drowned in sound uk, ernest ozuna, donal sutherland, | Who meta context benefits from unanticipated inflation (winners)? Borrowers- anyone who owes money, which is the vast majority of Americans, benefits because they are paying off loans in devalued dollars. In other words, earnings increase with inflation, while loan obligations are usually specified in the past. Those with price-setting power- they can alter their prices quicker than other and benefit. Firms- inflation makes it easier for firms to raise their prices and validate their past expenses/debts. Why does the Fed usually meta context raise interest rates? To fight labor costs, even though this only one of meta context many production costs. |
Best Mature Paysites
|
| Who is penalized by unanticipated inflation (Losers)? Lenders- dollars paid by debtors are worth less after inflation than when they were lent. Investors- pay taxes on returns that may only reflect inflation, but they also pay a privileged rate (the capital gains tax rate is 20 percent; not the 33% top income bracket) Holders of administration cash (those living on fixed incomes)- inflation administration erodes the value of a dollar over time. (But who uses cash? The mafia, terrorists, drug dealers, and administration Republicans but for quite different reasons. Most others use credit cards or checks that occasionally get floated. Inflation distorts relative prices. Is the inflation general or specific? This also leads to menu-costs- the reprinting of prices. But societies have addressed this problem. Lastly, inflation creates some uncertainty in decision-making — investments and retirements. |
|
Looking for real sex? Find someone now on the
largest sex personals network.FREE signup! Post a FREE erotic ad w/5 photos, flirt in chatrooms, view explicit live Webcams, meet for REAL sex! 30,000 new photos every day! Find SEX now 
|
