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by mfarris
3084 days ago
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Mild to moderate inflation is usually considered useful in paying back debt, as the constant dollar value of the debt decreases. Even with the low inflation we've had over the last 20 years, if you borrowed $1000 in 1997 with 0% interest and wanted to pay it back now, the 1000 "2018 dollars" you'd pay would only be "worth" 655 "1997 dollars". The real danger is in deflation, which causes the constant dollar value of the debt to grow. |
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