Inflation doesn’t have to reach triple or even double digits to have an effect on a country’s debt burden. If a country owes a big pile of money at 4%, and inf

Inflation doesn’t have to reach triple or even double digits to have an effect on a country’s debt burden. If a country owes a big pile of money at 4%, and inflation goes up to 2%, and the nominal GDP grows at 5%, then the overall debt-to-GDP ratio will decline.