Stephen King
[Inflation] matters in terms of the distribution of income. Broadly speaking, inflation is a debtor’s friend. And it is the creditor’s nightmare. […] It’s a terrible thing. It’s unfair. It’s not democratic. It’s a terrible thing to unleash from a society. And I think many of us have forgotten what damage it can do.
Content: Quotation | Author: Stephen King | Source: McKinsey Quarterly | Subject: Economics
Stephen King
Inflation tends to benefit debtors at the expense of creditors, and if the government happens to be one of the biggest debtors—and it’s normally the case that they are—then inflation is a very useful hidden tax. Because effectively it’s a tax on people’s cash wealth. If you’re not anticipating the inflation, it wipes out your cash savings. Then the government is effectively a winner. And … [ Read more ]
Content: Quotation | Author: Stephen King | Source: McKinsey Quarterly | Subject: Economics