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

[Doug Henwood]

On Aug 8, 2011, at 2:29 PM, Wojtek S wrote:


> 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?

Inflation will erode the value of principal.

Doug