Business

Why the U.S. Can't Inflate Its Way Out of Debt

CNNMoney.com
It's dawning on people that getting a handle on burgeoning U.S. debt will be a long and hard process. So if lawmakers can't agree on a credible plan, some have suggested that the country could just "inflate its way" out of its fiscal ditch. The idea: Pursue policies that boost prices and wages and erode the value of the currency. The United States would owe the same amount of actual dollars to its creditors -- but the debt becomes easier to pay off because the dollar becomes less valuable. That's hardly a good plan, say a bevy of debt experts and economists. "Many countries have tried this and they've all failed," said Mark Zandi, chief economist at Moody's Economy.com.
Click Here For The Full Story......

Posted by Editor at March 15, 2010 12:36 AM