Can inflation help countries dial down their debt? : The Indicator from Planet Money We 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?

Can inflation ... inflate away debt?

Can inflation ... inflate away debt?

  • Download
  • <iframe src="https://www.npr.org/player/embed/1098359927/1098426382" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript
Matt Cardy/Getty Images
(Photo Illustration by Matt Cardy/Getty Images)
Matt Cardy/Getty Images

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?

Music by Drop Electric. Find us: Twitter / Facebook / Newsletter.

Subscribe to our show on Apple Podcasts, Spotify, PocketCasts and NPR One.