Deflation and Debt repayments esp Gov.
Greetings all. My Question is why does deflation effectively increase debt repayments?
Ive been reading up alot about this and still cant get my head around the examples.
I want to especially know why deflation would be bad for the US government in relation to them servicing their debt.
Please could someone give me layman example of how to understand deflation and debt. and also what this scenario could mean for the the forex market.
Thank you
Greetings all. My Question is why does deflation effectively increase debt repayments?
Ive been reading up alot about this and still cant get my head around the examples.
I want to especially know why deflation would be bad for the US government in relation to them servicing their debt.
Please could someone give me layman example of how to understand deflation and debt. and also what this scenario could mean for the the forex market.
Thank you
