Is Inflation A Way Of Getting The Government Off The Hook?

[pdq1]

The new supremo at the Bank of England says we shouldn't be so rigid at sticking to the 2% maximum inflation figure. By letting inflation rise it helps the government handle its debts more easily.

We all know how successful this strategy can be especially those who took out mortgages some time ago and the outstanding debt seems to get smaller as inflation gets larger.

[pdq1]

Mark Carney the new Governor at the Bank of England says:

http://www.telegraph.co.uk/finance/economics/9738459/Mark-Carney-hints-at-need-for-radical-action-to-boost-ailing-economies.html

[youngmafbog]

At 2% we have some scope, but it can be a double edged sword so needs very careful monitoring.

At least being out of the Euro it is an option we have, unlike those locked into it who have so little control they just have to go with it.