Friday, November 4, 2022

Benefits of inflation?

The only other time in US history that our debt/GDP ratio was as high as it is today was after WWII (link).  High inflation in the following three years (8.5%, 14.4%, and 7.7%, link) reduced the real amount (in deflated dollars) that we had to pay back. Lenders (debt holders) lost, but borrowers (the US govt) won.

HT:  Cramer

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