>Keep in mind that hyperinflation only works to reduce inequality when coupled with financial repression.
Not really. If I owe some money, every increase in prices (and wages) make it easier for me to reimburse my loan. The rich lending money will be losing, big time.
Now, do rich people lend their money? I'm sure they do. They may own stocks, real estate and commodities in addition to currencies and obligations but their value will drop hard if they stop lending money.
The rich, as a class, can't protect themselves from inflation even if they start buying stuff that appreciate by selling the rest.
A few may find a hedge against this, but the exception proves the rule.
If the value of assets drops you get a deflation and central banks hate that, so in practice what happens is that asset values get propped up on an ongoing basis. This is the situation we are finding ourselves now.
Not really. If I owe some money, every increase in prices (and wages) make it easier for me to reimburse my loan. The rich lending money will be losing, big time.
Now, do rich people lend their money? I'm sure they do. They may own stocks, real estate and commodities in addition to currencies and obligations but their value will drop hard if they stop lending money.
The rich, as a class, can't protect themselves from inflation even if they start buying stuff that appreciate by selling the rest.
A few may find a hedge against this, but the exception proves the rule.