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It's shocking how cavalier economic folks like Krugman are when it comes to dismissing analogies between national finances and personal finances. Yes an indivi
by NikolaTesla 15y ago
It's shocking how cavalier economic folks like Krugman are when it comes to dismissing analogies between national finances and personal finances. Yes an individual does not have the ability to print their way out of debt, however, that doesn't diminish the fact that those doing the debasement are committing fraud against the people whose interests they claim to protect.
- nhaehnle 15y agoThat's an overly simplistic view of what is going on. A modest (<15%) rate of inflation that is driven by wage increases is actually a Good Thing for the majority of the population, because their real standard of living depends much more on the real value of income than it does on savings. And don't forget the role that debt and nominally fixed contracts for rent or mortgage play, either. If real incomes rise during an inflationary period, the majority of the population will be better off afterwards. This is not an unrealistic scenario, by the way. It happened several time throughout the 20th century. It's just that most people confuse inflation with hyperinflation - the latter is not so much "inflation writ large"; instead it is an outright rejection of the old money system, which is a huge qualitative difference.