23 Hrs
Source:
الاقتصادية
Can inflation reduce US $40T debt
The article indicates that Donald Trump's administration considers that a rise in inflation rates could be used as an indirect means to ease the burden of the U.S. national debt, which amounts to $40 trillion, especially after the debt-to-GDP ratio exceeded 120%. The article discusses how monetizing debt through high inflation could accelerate repayment, despite opposition from the Federal Reserve, which focuses on targeting a 2% inflation rate. Trump relies on the idea that increasing inflation—potentially eroding the real value of debts—could help reduce the debt burden, although this approach might raise concerns among economists about the risks of hyperinflation and its impacts on public finances and monetary policy.
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