logoalt Hacker News

HPsquaredtoday at 2:30 PM1 replyview on HN

Rent and salaries don't like going down because of debt. Debts are denominated in currency units and go up with inflation (interest rates have a component to correct for inflation) but they don't decrease if the currency gains value over time (this would need negative interest rates). I suppose that's something that could be done with regulation.


Replies

marcosdumaytoday at 8:19 PM

Yes. And even if people could refinance, debt values going down causes further deflation.

show 1 reply