Archive for August 14th, 2007
Debt Handling - Inflation and Interest Rates
Tuesday, August 14th, 2007
Ultimate Debt Guide 2006.
Inflation makes tomorrow’s dollars worth less than today’s. That makes borrowing more attractive to borrowers, but lending less attractive to lenders. In order to compensate, lenders raise interest rates, since (among other things) they too know that the dollars they will be repaid next month are worth less than the ones […]
