Inflation: A Tool for Managing National Debt?
Update: 2025-11-15
Description
Exploring the challenges of reducing national debt, we delve into traditional methods like budget surpluses and economic growth, finding them difficult in todays complex world. We then examine inflation as a potential tool, where rising prices could decrease the real value of debt. However, this strategy is not without its drawbacks, as higher interest rates can offset any benefits. Ultimately, inflation may be the most practical way to manage debt, but only if governments can keep interest rates in check.
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