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So net debtors benefit if there is inflation before they have to make payments. The more inflation there is before you make payments, the greater the benefit to

by jm__87 9y ago

So net debtors benefit if there is inflation before they have to make payments. The more inflation there is before you make payments, the greater the benefit to the debtor. As inflation naturally occurs over time, this benefit is less pronounced for debt where the principal repayments are amortized - the most common type of debt regular Americans have (e.g. car loans and mortgages). The US has averaged about 2% inflation over the past 10 years which is not very substantial. On the contrary, central banks buy financial assets with the money they print from QE. This directly benefits investors who hold those assets as the central bank buying increases the prices of those assets.

jm__87 9y ago
To add to this, it is very hard to argue that QE has not been good for those who are rich and have bought and held financial assets over the last 7 years or so. It is harder to say whether it has been beneficial for average individuals.. on the one hand, they can borrow at much lower rates, but on the other hand, certain asset prices have skyrocketed. We also need to consider the number of companies that have been able to keep employees on the payroll due to being able to finance debt at lower rates when the economy was doing poorly... in general, QE was good for everyone in the short term. The better question is, who does it hurt in the long term.