When used for productive things debt is good otherwise it is bad. Growing debt can indicate growing trust and confidence in the future. Growing debt can also i

When used for productive things debt is good otherwise it is bad. Growing debt can indicate growing trust and confidence in the future. Growing debt can also indicate over confidence and blindness about the future. Economies have debt cycles: https://youtu.be/PHe0bXAIuk0 https://youtu.be/PHe0bXAIuk0 Inflation is the economy’s rate of debt forgiveness. Bad when high but good when low but above zero. Without it economies get clogged by debt. A slow rate of debt forgiveness is more economically efficient than bankruptcies or debt jails. Inflation also combats sticky prices by forcing contracts to be regularly renegotiated to supply demand prices. For example wages are hard to adjust down and having inflation do that automatically few % per year is more economically efficient than having to fire workers and replace them.