Inflation and the Real Value of Debt: A Double-edged Sword

Christopher Neely

On the Economy from Federal Reserve Bank of St. Louis

Abstract: The recent bout of inflation will immediately reduce the real value of existing debts, but it will also tend to raise expected inflation. This could raise future borrowing costs.

Keywords: inflation; real value of debt (search for similar items in EconPapers)
Date: 2022-08-01
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Persistent link: https://EconPapers.repec.org/RePEc:fip:l00001:94567

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