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by 2arrs2ells
5381 days ago
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No, as a borrower, inflation works to your advantage. i.e. I borrow $1k at 0% for one year. I put the money in a 1 year CD paying 1% interest. At the end of the year, I pay back the loan with the CD's principal, and put the $10 interest in my pocket. Even if inflation were 2% (or 10%, or 100%), I am still making money - no matter how deflated the value of the dollar is, I still have more dollars in my pocket than when I started. (Inflation hurts lenders of money, not borrowers) |
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