4 ms·
Does inflation really matter here? The value of the loan isn’t inflated, so I don’t think inflation should “count” here? Willing to be wrong on that, just havi
by mwint 5y ago
Does inflation really matter here? The value of the loan isn’t inflated, so I don’t think inflation should “count” here?
Willing to be wrong on that, just having a hard time understanding.
- SkyPuncher 5y agoI'd argue that inflation is further reducing the cost. Inflation means that $1 is fundamentally less valuable in the future than it is right now. If we're making a deal for me to pay $1 in the future, I'd prefer to make that $1 payment as far out as possible.