Inflation tends to redistribute income from creditors to debtors.

Name: Inflation tends to redistribute income from creditors to debtors.
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Question

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Inflation reduces the real value of money over time, which means that the amount of money debtors owe to creditors decreases in real terms. This effectively transfers wealth from creditors, who receive less valuable repayments, to debtors, who pay back less in real terms than was originally borrowed.

Inflation Tends to Redistribute Income from Creditors to Debtors