This is true for all other commodities. The borrower now welcomes inflation since he will have to pay less in real terms than when it was borrowed. All of these factors make it absolutely essential that you account for the huge impacts that inflation can have on your long-term savings and ability to fund your golden years of retirement.
Purchasing power and, hence, aggregate demand, may also go up if government repays public debt. In Fig.
Just be careful of and watch out for the problems of ETFs. The researches of the inflation, which are studied, by a lot of scholars in the field of economics have been conducted for a long time especially during the s and it is the heyday when people would like to pay more attention to research the inflation.
Similarly, beneficiaries from life insurance programmes are also hit badly by inflation since real value of savings deteriorate.