Agree, inflation can theoretically increase not only prices, but wages to compensate the increased cost of living, therefore appear as a boomed GDP, bringing the debt to GDP ratio lower without actually reducing debt.
Eu, china, Russia all have much lower debt to GDP.
Of course in reality inflation is hard to manage once it gets out of hand, and the levels of interest rates don’t give enough space for corrections, and the problem of inflation being the reduced consumption leading to a lesser increase of GDP.
Agree, inflation can theoretically increase not only prices, but wages to compensate the increased cost of living, therefore appear as a boomed GDP, bringing the debt to GDP ratio lower without actually reducing debt. Eu, china, Russia all have much lower debt to GDP. Of course in reality inflation is hard to manage once it gets out of hand, and the levels of interest rates don’t give enough space for corrections, and the problem of inflation being the reduced consumption leading to a lesser increase of GDP.