[iso1210]

Sorry you're absolutely right -- typo honest, not me brainfarting.

Inflation whittles away at your debt, which is why inflation is good for the average person who owns very little cash and has lots of debt (i.e. someone with a mortgage) - assuming that wages keep up with inflation so the cost of the weekly shop is still x% of the weekly pay slip.

Of course high interest rates offset that somewhat, but if interest rates are around inflation level, for those with debt (ie young people who haven't benefited from inheritence a lot) it's a good thing.

[jkepler]

Inflation is good for corporate debtors, too, which is why governments around the world are so generally enamored with it.