Post
Topic
Board Economics
Re: Question about inflation and debt.
by
drachman
on 26/01/2020, 03:02:54 UTC
If a random country is in debt, is printing money a good way to pay it off at the expense of the citizens?

For example, lets say you owe an entity $100. If you print an extra $100 bill you pay off your debt, but unbeknownst to the entity the $100 that they lent you is now worth less.

Would the barter system be a good way of combating this?
Unless there is a world war we are not going back to the barter system, what a country is doing by printing currency like that to pay their debts is the equivalent of fraud, they were lent a certain amount of money that at the time bought a certain amount of goods and now they are repaying their debt with money that is worth a lot less, and by doing this they are stealing from all the people that have worked hard to make the economy of the country a success.