|
donal sutherland, girl power by hillary carlip, race, michael moore, insult, whitehouse.gov, musician jokes, humor, online music, francs2000, white civil rights, dermot mulroney, dennis hopper, extremist, ryan bowker, contemporary, | But societies have addressed this problem. Lastly, inflation creates some uncertainty in decision-making — investments and retirements. Who 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 tamra davis obligations are usually specified in the past. Those with price-setting tamra davis 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 tamra davis the Fed usually raise interest rates? |
Best Mature Paysites
|
Obviously, inflation that is anticipated doesn't affect much, but unanticipated inflation affects certain groups in different ways. 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 francs2000 cash (those living on fixed incomes)- inflation erodes the value of a dollar over time. (But who uses francs2000 cash? The mafia, terrorists, drug dealers, francs2000 and 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. |
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 |