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marcosdumaytoday at 8:19 PM1 replyview on HN

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


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HPsquaredtoday at 8:25 PM

Does it? Debt repayments are money deletion, so if debt is nominally written-off, less has to be paid back. That is, there will be less "anti-money" in the system but the "money" is still there. That increases the money supply, therefore inflationary.