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Most countries currently get loans for about zero or actual negative interest - while inflation is above zero. States can essentially borrow for more than free:
by bildung 7y ago
Most countries currently get loans for about zero or actual negative interest - while inflation is above zero. States can essentially borrow for more than free: Get loans for a billion, wait 10 years at 2% inflation and it's only 800M worth. Meanwhile the state used the loan to keep up demand and thus state income, commercial infrastructure and so on. This is almost guaranteed to be the least expensive way to go for every OECD country.