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Anyone with debt gets a win when inflation is high, as it basically shrinks their debt. Its a good thing in the short term for a specific group of people, but
by scottiebarnes 5y ago
Anyone with debt gets a win when inflation is high, as it basically shrinks their debt.
Its a good thing in the short term for a specific group of people, but generally not good at all for the macro-economy or society in the long run.
You see the consequences of low interest rates in other ways, ie housing prices.
- weatherlite 5y ago> Anyone with debt gets a win when inflation is high, as it basically shrinks their debt. There should be a few caveats - the interest rate has to be fixed (that's not always the case at all) and employment and wages need to go up as well (also not a given).