Questions

Under what circumstances is inflation underanticipated? Who benefits from this situation (the borrower or the lender)?

Under what circumstances is inflation overanticipated? Who benefits from this situation (the borrower or the lender)?

In general, did lenders who offered fixed-interest, 30-year mortgages in the early 2000s overanticipate or underanticipate inflation?

Define: the Fisher equation and the Fisher effect. If the inflation rises from 6 to 8 percent, what happens to real and nominal interest rates, according to the Fisher effect?