If you are paying a fixed rate on a mortgage, is inflation then a good thing?
In: Economics
Yes. It erodes the value of the loan principle over time. Inflation is always good for debtors in that way.
This is actually why the USA still had silver-backed money for a while in the late 20th century. Farmers teamed up with silver miners to lobby the government. They got Congress to pass a law forcing the government to buy silver and issue dollars backed by it. The miners wanted this because they wanted guaranteed customers for their product. But the farmers wanted it because it would induce inflation. So while the prices of their crops would rise, the value of their loans would fall.
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