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Effect of inflation on debtor |
| Answer» I recently pointed out why inflation isn\'t as good for debtors as is commonly assumed. Only if and to the extent it raises nominal income more than it raises the nominal cost of non-debt payments will it really help debtors and improve their ability to repay the debt and meet the debt payments. In most cases it will, but not in all cases, and even in the cases it do the gain is much smaller than is commonly assumed. | |