Euthanasia of the rentiers ?

Hope is that inflation has peaked but…inflation is the solution. After a long period in which the opposite has been true, perhaps it is the easiest and maybe even fairest way forward.

If we’re to get rid of the massive piles of debt our economies piled up, then we need inflation and nominal growth to run ahead of interest rates. Not only would this reduce the debt in a relatively painless manner, but it would also help to sort out our problems with wealth inequality.

Inflation staying above interest rates for a prolonged period is bad news for those who generate most of their wealth from assets (because the value of those assets decreases), but it’s good news for those who make most of their money from wage income (which is more likely to rise in line with inflation).

In other words, inflation benefits workers at the expense of asset owners, and the young at the expense of the old.