this post was submitted on 15 Oct 2026
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Yes, it reduces burden of debt, but it makes taking on new debt a lot more expensive, because interest rates are closely related to inflation.
And if you have to pay back a debt (as you normally have to after a predetermined time), and have to refinance it by taking up new debt, now you might not be able to pay the now higher interest.
So for the one who pays off his credit card debt, inflation is a good thing. For the company that used that credit to invest in something that will only bring revenue at a future point in time, this is a real fucking problem (this is what is happening in Russia currently btw. Bankruptcies are skyrocketing there because of the high inflation and the even higher interest rate - and stalling domestic spending - , and that rate is being artificially kept "low" to boot. There has been an intense power struggle between the russian central bank and the Kremlin this year. Look up Elvira Nabiullina's "disappearance" this June)