We often hear news of rising inflation rate, quantitative easing, and the importance of acquiring good debt being thrown around in the media. We sometimes even hear savvy investors advocating how “the rich acquire good debt, while the poor get into debt to acquire liabilities”, which begs the question: What is inflation, and how does it actually affect us? In this article, we set out to explain the significance of inflation, its underlying principles, and how it is able to erode good debts like mortgages in the long term.
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