Tim Knowles
1 min readAug 12, 2019

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High inflation benefits debt holders of a fixed-rate interest debt and incentives increased debt and hurt lenders, since paying off a fixed-rate debt later will be with less valuable money.

I don't think you are right about that. Interest rates are set based on inflation expectations. Higher than expected inflation benefits debt holders but lower than expected inflation hurts debt holders. It not level of inflation but the level compared to expectations.

TEK

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Tim Knowles
Tim Knowles

Written by Tim Knowles

Worked in our nations space programs for more than 40 years

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