Mike Schüssler
4 minute read
13 Oct 2021
7:00 am

Inflation has its positives, and can help fight your debt

Mike Schüssler

Monetary policy normally fights inflation by increasing interest rates, but only a few central banks have done so – most have not.

Picture: iStock

The pandemic caused economies around the world to slump. Governments reacted by issuing stayat-home orders that caused problems for many as their incomes and livelihoods were destroyed. Governments spent money like crazy trying to help people weather the Covid storm – but in fact helped create problems with their lockdowns and the fear and panic caused the biggest decline in a hundred years. Worldwide, we added more than 20% to the debt burden in about 18 months. It’s not over yet, either, and policymakers have a new panic to worry about – and it could make Covid seem like a...