Post
Topic
Board Economics
Re: Lenders and borrowers during inflation
by
Doan9269
on 15/09/2022, 21:24:36 UTC
Conclusion: People with good and profitable businesses can borrow money to boost their business during inflation. They will always be at the gaining side if the money is utilized well

If we look at the entire situations that round about borrowing money for business during inflation, it can be concluded that it has both the good and bad side, during inflation, we know that the orice of buying a commodity rise and the seller makes more profits through this but we must not forget that there are occasions whereby sellers were incapacitated to afford buying a product due to high price and in this situation the seller begin to experience a drop in selling rate till he's unable to make a sell in other to return the borrowed fund, and we also know that some items are perishable, which means they can't last long before consumption and if the seller have a pause or drop in selling rate due to inflation, then this aren't going to work out nice, because he had debts ahead to pay for.