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> To start solving the debt problem, the central banks should start targetting 4-5% inflation for a decade or so, Wouldn't that just cause lenders to increase
by shawabawa3 13y ago
> To start solving the debt problem, the central banks should start targetting 4-5% inflation for a decade or so,
Wouldn't that just cause lenders to increase their interest rates?
> Deflationary regimes favor hoarding, make it impossible to invest,
Most sound investments yield returns way above inflation, and they would also yield returns way above deflation
> and ultimately benefit only the wealthy
Unlike the current system?
- hnnewguy 13y ago>Wouldn't that just cause lenders to increase their interest rates? Yes it would. Only unexpected inflation will affect debt repayment rates (in theory).