COSTS OF INFLATION

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10 Terms

1
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What are the impacts of inflation?

  • Borrower BENEFITED

  • Lender HURT

2
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What are the impacts of deflation?

  • Borrower HURT

  • Lender BENEFITED

3
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Who will be benefited by inflation?

Borrower

4
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Who will be hurt by inflation?

Lender

5
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Who will be benefited by deflation?

Lender

6
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Who will be hurt by deflation?

Borrower

7
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Menu Cost

Biaya selalu gonta-ganti menu karena nyesuaiin harga

8
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Shoeleather cost

biaya bolak-balik ke bank untuk ngambil duit karena nilai real money turun

9
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Tax distortion

Meningkatnya beban pajak karena pajak gak masuk inflasi

10
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Relative price variabilities

perbedaan harga yang diantisipasi dengan harga aslinya