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Monetary inflation increases inequality because the well-connected interests (banks, large corporations, governments) have access to the new money first. They have better financing terms. They have special arrangements. They can spend the new money into the economy before general price levels rise.

Asset prices rise as people flee from cash, so those with assets see their wealth outpace those without assets.

Inflationary economies based on debt are inherently levered relative to underlying assets, thus are prone to collapse and require more bailouts.

General price inflation hurts those at the bottom of the economic ladder, since it makes their cost of living rise and prevents them from saving to accumulate capital.

"But wages rise to keep track of inflation."

No, they don't: https://wtfhappenedin1971.com/




This depends on how the money is distributed - if we have stimulus checks (and eventually everyone has an account at the FED), for example, it's not true that well-connected interests get access to that money first.


I'm honestly tired of waiting for the government to decide to do fiscal stimulus. The US is lucky that they got a competent president. In the EU you're never going to see stimulus checks.




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