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> Don’t forget persistent inflation, which is how they make a profit off printing money. Ah, well no, high inflation means that "they" loose money, kinda. Infl
by KaiserPro 1y ago
> Don’t forget persistent inflation, which is how they make a profit off printing money.
Ah, well no, high inflation means that "they" loose money, kinda. Inflation means that the original money amount that they get back is worth less, and if the interest rate is less than inflation, then they loose money.
"reasonable" inflation means that loans become less burdensome over time.
However high inflation means high interest rates. So it can mean that initially the loan is much more expensive.