Re:US Gross Domestic Product, Second Quarter 2022 (Advance E...
by mym1990 on Thursday July 28, 2022 @12:54PM
(#32266978)
Is this a positive effect? I think it is for lower inflation rates, but above a certain threshold the borrowing can get out of hand, people will go and get more loans, which will drive prices higher. Eventually the bubble pops and people go underwater.
Also keep in mind that those debt figures are in nominal USD. One positive effect of inflation is that it reduces the real cost of paying off debt.