March 11, 2010
NEW YORK — It’s dawning on people that getting a handle on burgeoning U.S. debt will be a long and hard process.
- A d v e r t i s e m e n t
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.