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Inflating your way out of debt is as bad to debt holders as a (partial) default.
by usaar333 15y ago
Inflating your way out of debt is as bad to debt holders as a (partial) default.
- pyoung 15y agoI agree that is bad for debt holders, but from a political stand point, it is easier to gradually print money to devalue your debt than it is to default.
- count 15y agoDoes that hold true when you're inflating the reserve currency?
- cgp 15y agoyou can't assume that printing money here will incur inflation, as money is being just sucked up by the system right now - a lot of it in the form of housing prices falling (and thus falling off the assets sheets of banks)