Can inflation help countries dial down their debt? : The Indicator from Planet MoneyWe often talk about inflation as a bad thing. But for countries in a lot of debt, inflation has an upside. But can a country try to inflate its way out of debt?
For all the pain it causes, inflation has an upside: It makes old debts easier to pay off. A silver-lining for countries burdened by pandemic debt? Maybe. But if history is any guide, that shine may be short-lived.
Today on the show, we'll explain why and ask: Can a country inflate away its debt?