Obviously, if there is a period of high inflation people with fixed rate loans make out very well. That is because they will be paying back their loan in inflated dollars. But economics teaches us that there is no free lunch. While the borrower makes out well, another party suffers. My question is will banks suffer and possibly fail during periods of high inflation that made a lot of fixed rate loans? Or is it another party that suffers such as the FED who made loans to banks and gets paid back in inflated dollars?