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If that's universally true, why would lenders lend in a high inflationary environment?
If that's universally true, why would lenders lend in a high inflationary environment?
The interest is usually still more than inflation, they just make less money- and the alternatives for them are either cash, which loses more, or investments that are higher risk and more volatile.
Because they lose more if they just stick it in a box under the bed.