Inflation does decrease the value of debts. That only matters if the borrower has a non-inflated asset to pay off their debt. Most people earn in dollars whic

Inflation does decrease the value of debts. That only matters if the borrower has a non-inflated asset to pay off their debt. Most people earn in dollars which will decrease in value at the same rate as their debt. Earning the same amount of dollars with inflation means more of earnings go to paying for life and less to go towards debts. Now, lets say you have a gold bracelet and inflation only cuts the value of the dollar in half one time. The gold bracelet can be sold for twice as many dollars that can be used to pay off debt. One halving is a mild inflation scenario. Romania in the 90s went through 14 halvings.