Inflation, Deflation, and Redistribution

As Paul Krugman points out in a couple of recent articles, it's worth considering whose interests are served by high interest rates and low inflation, or as Krugman calls it, hard-money ideology.

"Basically, inflation redistributes wealth down the scale of both wealth and age, while deflation does the reverse."

See:

• Class and Monetary Policy
• More on Class and Monetary Policy