Suppose that in 2022 there is a sudden, anticipated burst of inflation. Consider the situations, a through d, faced by the following individuals. Who gains and who loses as a result of inflation and why?
a. A homeowner whose wages will keep pace with inflation in 2022 but whose monthly mortgage payments to a bank will remain fixed.
b. An apartment landlord who has guaranteed to his tenants that their monthly rent payments during 2021 will be the same as they were during 2022.
c. A banker who made an auto loan that the auto buyer will repay at a fixed rate of interest during 2022.
d. A retired individual who earns a pension with fixed monthly payments from her past employer during 2022.
