Re:Skimpflation: A reason inflation is worse than the govern...
by jolux on Monday November 01, 2021 @10:40AM
(#29067138)
> I'm not sure why you think Creditors would consistently underestimate inflation. Maybe they do, but why would they?
Hard to predict, in general. Would you have predicted we’d be looking at 5% inflation right now, three years ago? We haven’t seen inflation like this in decades.
> That hurts debtors.
Only if they have variable-rate loans.
The broader point here is that it’s creditors (and the wealthy) who bemoan inflation the most because it means their rents are going to be worth less.
Hard to predict, in general. Would you have predicted we’d be looking at 5% inflation right now, three years ago? We haven’t seen inflation like this in decades.
> That hurts debtors.
Only if they have variable-rate loans.
The broader point here is that it’s creditors (and the wealthy) who bemoan inflation the most because it means their rents are going to be worth less.