alphacyberranger@sh.itjust.works to World News@lemmy.worldEnglish · 1 year agoGlobal inflation fears as oil price rises towards $100 a barrelwww.theguardian.comexternal-linkmessage-square43fedilinkarrow-up1172arrow-down15
arrow-up1167arrow-down1external-linkGlobal inflation fears as oil price rises towards $100 a barrelwww.theguardian.comalphacyberranger@sh.itjust.works to World News@lemmy.worldEnglish · 1 year agomessage-square43fedilink
minus-squareImFresh3x@sh.itjust.workslinkfedilinkEnglisharrow-up0arrow-down1·edit-21 year agoInflation allows borrowers to pay lenders back with money worth less than when it was originally borrowed. Inflation is in fact a massive transfer wealth from the lenders to the borrowers, measure in trillions. Econ 101 https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/economic-iondicators-and-the-business-cycle/costs-of-inflation/a/lesson-summary-the-costs-of-inflation https://www.investopedia.com/ask/answers/111414/does-inflation-favor-lenders-or-borrowers.asp https://www.marketwatch.com/story/why-inflation-could-create-a-giant-wealth-transfer-from-lenders-to-borrowers-11623876205 I’m not saying runaway inflation is generally good. It’s not, especially if ongoing for long. I’m just talking about lenders and borrower. The impact of interest rates is a lot less cut and dry.
Inflation allows borrowers to pay lenders back with money worth less than when it was originally borrowed.
Inflation is in fact a massive transfer wealth from the lenders to the borrowers, measure in trillions.
Econ 101
https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/economic-iondicators-and-the-business-cycle/costs-of-inflation/a/lesson-summary-the-costs-of-inflation
https://www.investopedia.com/ask/answers/111414/does-inflation-favor-lenders-or-borrowers.asp
https://www.marketwatch.com/story/why-inflation-could-create-a-giant-wealth-transfer-from-lenders-to-borrowers-11623876205
I’m not saying runaway inflation is generally good. It’s not, especially if ongoing for long. I’m just talking about lenders and borrower.
The impact of interest rates is a lot less cut and dry.