Remarkl
May 27, 2022

Reasons you want a small amount of consistent inflation:

Add that loans denominated in depreciating dollars self-amortize in real terms as part of the interest is actually principal, and the value of collateral rises as the underwriting data supporting the loan ages. Both of these phenomena reduce the risk of lending, which lowers the cost of capital in real terms.

Remarkl
Remarkl

Written by Remarkl

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