“Inflation is increase in the money supply.”
I know, but that still doesn’t answer my question...
Should I pay off my debts or take out a loan? ;-)
Might as well have a bit of fun with this - better than crying.
If you have income that you know will increase in nominal value along with inflation, get a big loan. The interest payments will not rise and the loan will get smaller in real value as inflation proceeds. If you income does not increase with inflation then no loan. My daughter has a mortgage that decreased as a share of her income because her income was outpacing inflation and did not pay it off when she could have because she felt she was “making money” with it. Then she lost her job and is reduced to part time work with a slowly declining number of hours and no chance of any sort of nominal pay raise. The mortgage is a huge burden now.