Inflation. Friend or Foe?

Some things to think about (as I think we will see more of it in 2008):

1. Why do people (and the Fed) worry about high inflation rate?
2. How does inflation impact the stock market or stock/index price (or does it)?
3. Does inflation hurt the poor more or the rich?
4. Does high inflation help anyone ? (Bueller.. Bueller.. anyone.. anyone..)
5. Does inflation make the gap closer (or widens) between the rich and the poor (and what about the middle class)?
6. Bottom line: Is high inflation rate good or bad?

What do you guys think?

Happy Holidays!

Sidarta Tanu

*Inflation is defined as the increase in the price of some set of goods and services in a given economy over a period of time.