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Re:Have we been thinking about inflation all wrong? by cjbgkagh on Thursday February 10, 2022 @02:35PM (#30291333)
The proportion of the risk premium paid by poor people to the total total interest rate decreases with higher risk free interest rates.
Re:Have we been thinking about inflation all wrong? by jljljl on Thursday February 10, 2022 @07:27PM (#30295030)
True, but I don’t see why that matters? They will still be paying higher rates, with likely lower incomes, and a principle whose real value does not diminish over time (since debts are held in nominal terms). If their debts were issued with fixed rates, then inflation would eventually reduce the Real cost of their interest as well.