Social Sciences and the Law

How are investors affected by inflation?

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Stockholders make gains—often illusory—from increased business profits, but bondholders lose because their fixed percentage return has less buying power. Borrowers also gain from inflation, since the future value of money is reduced.

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Get more facts and information about inflation . Or, view the full encyclopedia entry from The Columbia Encyclopedia, Sixth Edition.

Similar questions: How are stockholders affected by inflation? How are bondholders affected by inflation? Do borrowers benefit from inflation? [ Hide these questions ]

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