Saifedean explains it better than I can in The Fiat Standard.

But it's basically possible to earn a positive result with a money that apparently loses money by:

- Securing high quality debt (as in, low rates, long terms, little or no collateral needed).

- Running a business that can update its prices with inflation easily.

- Buying real assets that will keep up with inflation.

On a micro scale: an Argentinian taxi driver might earn more money buying a car with an auto loan that actually running the service, because inflation shrinks his debt and makes the car increase in value in nominal terms.

Reply to this note

Please Login to reply.

Discussion

No replies yet.