If you are paying a fixed rate on a mortgage, is inflation then a good thing?
In: Economics
Inflation is good for all debt. Mortgages are just one form. So is government debt.
This is why inflation is good for the economy in small doses: it encourages you to spend more money now since that same thing will cost more in the future if you wait. But if you buy it with debt, that debt amount is fixed so over time it’s less. This encourages people and companies to spend more money now instead of waiting and “rewards” them for doing it.
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