Inflation Is a Dangerous Way to Get Rid of Debt Burdens

Source: American Institute for Economic Research
by Richard M Ebeling

“Suppose you lent someone $100, and when they paid you back they only handed you, say, $99 or $80. Would you consider the borrower to have kept his promise and contractual obligation? Or would you think that he had cheated you out of a part of the money you had lent him in good faith? Well, there are those who say that doing so is just fine, if it’s done through price inflation so the borrower repays the lender in depreciated dollars. Binyamin Appelbaum, who makes this argument, is the lead writer for The New York Times on financial and economic affairs.” (06/01/21)