# Confusion regarding the definition of inflation premium

'Inflation premium' is defined here as the higher return that investors demand in exchange for investing in a long-term security, where inflation has a greater potential to reduce the real return.

In another book, I saw inflation premium being defined as the bonus brought by inflation to the borrowers.

Both these ideas are contradicting, as the first one implies inflation premium is a compensation for investors, while the second one claims it is a compensation for borrowers, considering the rise in price levels.

Which one is correct?