4 ms·

How does one profit from inflation?

• warble 4y ago
  If you take a loan out to purchase a real asset (say real-estate, or something that holds value over time) for some amount, if the inflation goes up by 50% and you have the ability to make more money as you're earning money from outside the country, your load liability effectively goes down by 50%. So you're paying 50% less for that loan over time. This makes capital investments cheaper. This is just one example.
  • xtracto 4y ago
    Just make sure the loan is in fixed interest rate.
• deleted 4y ago
  [deleted]