Dean Baker: Are Investors Less Confused About Real and Nominal Interest Rates Than They Were 40 Years Ago?: "Brad DeLong picks up on Paul Krugman's column...
...and questions whether the top one percent of the income distribution (or top 0.01 percent) really have much to fear from higher inflation. Brad concludes that they don't, but that they think they do. He says:
The top 0.01% were impoverished by the 1970s as a whole. But they have not been enriched by the post 2008 era. What they have gained via a higher capitalization via low safe interest rates has been offset by what they have lost as a result of depressed profits, depressed by a low level of economic activity, a depression which has not been completely offset by downward pressure on wages. The top 0.01% would not be poorer absolutely (although they would be poorer relatively) in a high-pressure higher-inflation economy. But they think they would be…"
I'm not sure about Brad's story here.