alt Hacker NewsInflation makes servicing debt cheaper which incentivizes getting loans to build things.
It also leads to those who have little bargaining power to become underpaid as they cannot negotiate higher salaries as inflation squeezes them.
Inflation makes servicing debt cheaper which incentivizes getting loans to build things.
It also leads to those who have little bargaining power to become underpaid as they cannot negotiate higher salaries as inflation squeezes them.
Inflation usually results in the central bank raising interest rates and thereby discouraging new loans for new projects, to try to prevent further inflation.
Maybe you could win if you’re leveraged using fixed-rate, long-term loans and you’re also confident that you can sell something at a higher price. But that’s a rather specific financial maneuver.