4 ms·
The Fed has changed policy, 2% is not a maximum anymore. With as much government debt as we have now, inflating it away is the only realistic way to get rid of
by svachalek 6y ago
The Fed has changed policy, 2% is not a maximum anymore. With as much government debt as we have now, inflating it away is the only realistic way to get rid of it.
- throwaway0a5e 6y agoPrivate debt is subject to inflation too.
- svachalek 6y agoWhat does private debt have to do with Fed policy?
- throwaway0a5e 6y agoHigher inflation reduces debt over time. You take on a mortgage and 10yr later paying it is cake because the debt doesn't track inflation whereas your pay does.
- Jarwain 6y agoThat's only true if inflation is higher than the interest on your debt though, right?