[lbo-talk] Inflation a cure, not a disease?

[Wojtek S]

".I argued that the only practical way to shorten the coming period of
painful deleveraging and slow growth would be a sustained burst of
moderate inflation, say, four to six per cent for several years."

[WS:] Pardon my naivete, but how exactly is inflation going to
accomplish the transfer from creditors to debtor in the era of
adjustable interest rates?  If the inflation goes up, so will interest
rates, so the creditors will get their inflation adjusted money
anyway, no?

Wojtek