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Q: How does unanticipated inflation hurt creditors and help borrows how can anticipating the inflation make these effects less severe?
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Sulfur lends or borrows?

It borrows electrons


When was Brian Borrows born?

Brian Borrows was born on 1960-12-20.


When was Chester Borrows born?

Chester Borrows was born on 1957-06-20.


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How does inflation affect borrowers?

A person who borrows money for 30 years at a fixed rate in order to buy a home is the best example. Inflation has the effect of making the value of the equal monthly mortgage payments smaller. At the same time inflation causes the value of the home to increase. Consider, for instance, someone who borrowed money 25 years ago to buy a home in which they are still living. The monthly payments will seem very small indeed compared to the value of the home.


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