Friday, August 27, 2010

Inflation Was Actually Kinda Awesome For A Lot Of People

I've never seen a study, but while the 70s had some economic problems, for large numbers of homeowners inflation eroded the value of their mortgages tremendously. If wages keep up - and that's an if of course - higher than expected inflation is pretty awesome for people with nominally denominated deb and bad for those who lent the money, which is why banksters and their pals at the Fed really really hate inflation.