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inflation makes buying stuff on credit more attractive, especially when you can get it with really low interest rates which everyone expect to rise sooner than
by wulfricin 5y ago
inflation makes buying stuff on credit more attractive, especially when you can get it with really low interest rates which everyone expect to rise sooner than later
- lottin 5y agoNot really... if everyone expects inflation to rise, it will already be priced in.
- unstatusthequo 5y agoNot everybody is clued in. Average random person on the street can’t even answer the question of how does money supply and inflation interact?
- gassius 5y agoPriced in, in what? Assets prices? That would make for, inst-ainflation, I guess... In any case, the thing is that cannot be priced into the rates of loans, because the same factor that will contribute to a rising inflation (increasing the monetary mass faster than real economic productivity) makes the loans very cheap by definition. I for sure would get into all the long term fixed low rate debt I can handle to acquire assets that I think will not depreciate as fast