Unexpected inflation has no wealth redistribution effect on the population.

Question

Quizplus · Accepted Answer

Unexpected inflation can result in wealth redistribution since it typically impacts different groups of individuals unequally. For example, individuals who hold a significant amount of cash or have fixed incomes may see a decrease in their purchasing power, while those who have investments in assets that appreciate in value during inflation (such as real estate or precious metals) may see an increase in their wealth.

Unexpected Inflation Has No Wealth Redistribution Effect on the Population