2026-10-17 00:12 UTC
I’m an economics idiot. But doesn’t general inflation reduce the burden of debt?
Replies (1)
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@HaraldvonBlauzahn@feddit.org 2026-10-17 06:11
Significant inflation leads to incfeased interest rates and this makes it more expensive to take on new debt. Or, if a country has high inflation and does not increase interest rates, this can lead to money flowing out of the country. Inflation can also affect consumer spending, and therefore, selling of future products. Whether the effect is positive or negative could depend on how much consumer spending is debt-financed.