{"id":4192,"date":"2012-04-23T20:59:14","date_gmt":"2012-04-24T00:59:14","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=4192"},"modified":"2012-04-23T20:59:14","modified_gmt":"2012-04-24T00:59:14","slug":"economonitor-economonitor-distributional-impacts-of-monetary-policy","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2012\/04\/23\/economonitor-economonitor-distributional-impacts-of-monetary-policy\/","title":{"rendered":"EconoMonitor \u00bb Distributional Impacts of Monetary Policy"},"content":{"rendered":"

…Higher than expected inflation will indeed create some winners and losers:<\/p>\n

However, the biggest losers are creditors who are almost by definition wealthy, since people owe them money. If a creditor has lent out $100 million at 2 percent interest (e.g. buying a 10-year U.S. or German government bond) and the inflation rate rises from 2 percent to 4 percent, this creditor has lost an amount equal to 100 percent of his expected income or 2 percent of his wealth. This is a far larger loss than any worker could experience as a result of this increase in the inflation rate.<\/p>\n

Who would be the winners?<\/p>\n

Also, most workers are debtors to some extent. They are likely to have mortgage debt, credit care debt, student loan debt and or car debt. A higher rate of inflation means that they can repay this debt in money that is worth less than the money they borrowed.<\/p>\n

via EconoMonitor : EconoMonitor \u00bb Distributional Impacts of Monetary Policy<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

…Higher than expected inflation will indeed create some winners and losers: However, the biggest losers are creditors who are almost by definition wealthy, since people owe them money. If a creditor has lent out $100 million at 2 percent interest (e.g. buying a 10-year U.S. or German government bond) and the inflation rate rises from … <\/p>\n

Continue reading “EconoMonitor \u00bb Distributional Impacts of Monetary Policy”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[1045,1828,2346],"class_list":["post-4192","post","type-post","status-publish","format-standard","hentry","category-economy","tag-distributional-impact","tag-inflation","tag-monetary-policy"],"yoast_head":"\nEconoMonitor \u00bb Distributional Impacts of Monetary Policy - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"EconoMonitor \u00bb Distributional Impacts of Monetary Policy - the patient investor\" \/>\n<meta property=\"og:description\" content=\"…Higher than expected inflation will indeed create some winners and losers: However, the biggest losers are creditors who are almost by definition wealthy, since people owe them money. If a creditor has lent out $100 million at 2 percent interest (e.g. buying a 10-year U.S. or German government bond) and the inflation rate rises from … Continue reading "EconoMonitor \u00bb Distributional Impacts of Monetary Policy"\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2012\/04\/23\/economonitor-economonitor-distributional-impacts-of-monetary-policy\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:author\" content=\"https:\/\/facebook.com\/people\/The-Patient-Investor\/61572934660810\/\" \/>\n<meta property=\"article:published_time\" content=\"2012-04-24T00:59:14+00:00\" \/>\n<meta name=\"author\" content=\"Colin Twiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Colin Twiggs\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2012\/04\/23\/economonitor-economonitor-distributional-impacts-of-monetary-policy\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2012\/04\/23\/economonitor-economonitor-distributional-impacts-of-monetary-policy\/\"},\"author\":{\"name\":\"Colin Twiggs\",\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/person\/d42b18d516a80149d739845749ac6454\"},\"headline\":\"EconoMonitor \u00bb Distributional Impacts of Monetary Policy\",\"datePublished\":\"2012-04-24T00:59:14+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2012\/04\/23\/economonitor-economonitor-distributional-impacts-of-monetary-policy\/\"},\"wordCount\":164,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#organization\"},\"keywords\":[\"distributional impact\",\"Inflation\",\"Monetary Policy\"],\"articleSection\":[\"Economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/thepatientinvestor.com\/index.php\/2012\/04\/23\/economonitor-economonitor-distributional-impacts-of-monetary-policy\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2012\/04\/23\/economonitor-economonitor-distributional-impacts-of-monetary-policy\/\",\"url\":\"https:\/\/thepatientinvestor.com\/index.php\/2012\/04\/23\/economonitor-economonitor-distributional-impacts-of-monetary-policy\/\",\"name\":\"EconoMonitor \u00bb Distributional Impacts of Monetary Policy - the patient investor\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#website\"},\"datePublished\":\"2012-04-24T00:59:14+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2012\/04\/23\/economonitor-economonitor-distributional-impacts-of-monetary-policy\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/thepatientinvestor.com\/index.php\/2012\/04\/23\/economonitor-economonitor-distributional-impacts-of-monetary-policy\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2012\/04\/23\/economonitor-economonitor-distributional-impacts-of-monetary-policy\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/thepatientinvestor.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"EconoMonitor \u00bb Distributional Impacts of Monetary Policy\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/thepatientinvestor.com\/#website\",\"url\":\"https:\/\/thepatientinvestor.com\/\",\"name\":\"The Patient Investor\",\"description\":\"Smart. 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They have done so for reasons relating to immediate macroeconomic stabilisation... to go beyond the zero-interest rate limit. The Eurosystem as well\u2026","rel":"","context":"In "Banks & Interest Rates"","block_context":{"text":"Banks & Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":27011,"url":"https:\/\/thepatientinvestor.com\/index.php\/2021\/07\/24\/elvira-nabiullina-for-next-fed-chair\/","url_meta":{"origin":4192,"position":1},"title":"Nabiullina for next Fed Chair","author":"Colin Twiggs","date":"July 24, 2021","format":false,"excerpt":"The Bank of Russia announced a 1% hike in its policy rate, to 6.5%, citing \u201cthe contribution of persistent factors to inflation increased due to faster growth of demand compared to output expansion capacity.\u201d Governor Elvira Nabiullina had warned markets on June 28 of a possible hike of up to\u2026","rel":"","context":"In "Banks & Interest Rates"","block_context":{"text":"Banks & Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":23764,"url":"https:\/\/thepatientinvestor.com\/index.php\/2021\/01\/20\/us-federal-debt-dilemma\/","url_meta":{"origin":4192,"position":2},"title":"US federal debt dilemma","author":"Colin Twiggs","date":"January 20, 2021","format":false,"excerpt":"Paul Krugman has a simple solution to the US federal debt: We have been pointing out for while that the US Treasury is unlikely to ever repay the federal debt and instead will rely on inflation to lift GDP (and tax revenues). Krugman overlooks one significant problem, however. Federal debt\u2026","rel":"","context":"In "Debt Levels"","block_context":{"text":"Debt Levels","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/debt-levels\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":62781,"url":"https:\/\/thepatientinvestor.com\/index.php\/2025\/10\/18\/lax-fiscal-policy-is-the-root-cause-of-inflation\/","url_meta":{"origin":4192,"position":3},"title":"Lax Fiscal Policy is the Root Cause of Inflation","author":"Colin Twiggs","date":"October 18, 2025","format":false,"excerpt":"Key Points A recent Bank of England study highlights the importance of responsible fiscal policy in controlling inflation. A recent paper from Michael Bordo, Oliver Bush, and Ryland Thomas at the Bank of England argues that loose fiscal policy is the root cause of inflation rather than lax monetary policy.\u2026","rel":"","context":"In "Deficit Spending & Employment"","block_context":{"text":"Deficit Spending & Employment","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/deficit-spending-employment\/"},"img":{"alt_text":"UK Inflation Spike in the 1970s","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-10-17-uk-inflation2.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-10-17-uk-inflation2.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-10-17-uk-inflation2.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-10-17-uk-inflation2.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":58630,"url":"https:\/\/thepatientinvestor.com\/index.php\/2024\/10\/23\/all-roads-lead-to-inflation\/","url_meta":{"origin":4192,"position":4},"title":"“All roads lead to inflation”","author":"Colin Twiggs","date":"October 23, 2024","format":false,"excerpt":"Fed rate cuts have spiked long-term yields over the past three weeks, with the 10-year Treasury yield climbing to 4.2% on Tuesday. The bond market expects a resurgence of inflation. That may not be a policy defect but a policy goal. Paul Tudor Jones: \"All roads lead to inflation\" Veteran\u2026","rel":"","context":"In "Banks & Interest Rates"","block_context":{"text":"Banks & Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"10-Year Treasury Yield","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2024\/2024-10-22-tnx.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2024\/2024-10-22-tnx.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2024\/2024-10-22-tnx.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":6215,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/11\/18\/the-liquidity-trap\/","url_meta":{"origin":4192,"position":5},"title":"The Liquidity Trap","author":"Colin Twiggs","date":"November 18, 2012","format":false,"excerpt":"In his 2003 paper Escaping from a Liquidity Trap and Deflation: The Foolproof Way and Others Lars E.O. Svensson describes the liquidity trap experienced by countries such as Japan and lately the US, when central bank interest rates are close to zero percent. If the nominal interest rate is initially\u2026","rel":"","context":"In "Banks & Interest Rates"","block_context":{"text":"Banks & Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/4192","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=4192"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/4192\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=4192"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=4192"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=4192"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}