Inflation isn't necessarily bad for the economy and stocks.... it is for bonds. And definitely good for people with loans on assets... since the assets will rise against borrowed money. Similar for governments. The economy will probably grow more than the inflation, therefore increasing taxes... as long as they keep a lid on the budget, that should work well.
If the budget keeps blowing out, then there will be a debt servicing problem indeed....
Same goes for individuals/households. If economy grows, income should normally grow as well... therefore the cost of loans relative to income will lower.
If the budget keeps blowing out, then there will be a debt servicing problem indeed....
Same goes for individuals/households. If economy grows, income should normally grow as well... therefore the cost of loans relative to income will lower.
