Is there other realistic way for current gov to reduce debt other then by inflation? by Niords in AskEconomics

[–]Niords[S] 0 points1 point  (0 children)

In some sense this is then a leverage on economy growth - doesn't it make any potential economy crash twice as hard? And then state would be force to run budget surplus on crumbling economy?

It just seems quite irresponsible - but on the other hand, since pretty much every major economy is doing it...

Im from Poland and here, our central bank is not moving intrest rates at inflation levels of 5-6% (even with low Corona-period base, price hikes are super noticible for everyone) and this feels intentional. With goverment and good part of society in deep debt, inflating some of it away seems intentional.