Printing Money Increases Inflation

question 92

Essay

Printing money increases inflation. The higher the inflation, the lower the real value of debt. So why is this method not used to pay debts?

---

Definitions:

Statement of Liquidation

A financial statement prepared during the liquidation process detailing the assets to be sold off and liabilities to be paid.

Liquidation Process

The procedure of winding up a company's operations, selling off its assets, and distributing the proceeds to creditors and shareholders.

Frequent Reporting

The practice of regularly submitting business performance reports more often than the standard annual reporting.

Dissolution

The process of legally dissolving a corporation or partnership, resulting in the termination of its business operations.