4 ms·

Honest question. If inflation was caused by debt, why is inflation going down while the debt increases faster?

• plonk 3y ago
  Because interest rates are increasing? Both the cost of debt and the cost of the dollar increase.
  • ngetchell 3y ago
    I suspect rising interest rates and stable gas prices are what is causing lower inflation. The parent stated a link between more debt and more inflation and was hoping for an explanation that would explain the link.
    • plonk 3y ago
      Government spending both increases the government's debt and causes inflation. Maybe that's the link they are looking for. Plus, I don't know much about monetary policy, but wouldn't the Fed feel obliged to start quantitative easing if the government's debt put it in difficulty?