does that immediately imply that the rich get richer and the poor get poorer
considering that debt is especially sensitive to inflation, yes definitely. With high inflation, debtors can pay back their debt easier since inflation eats a percentage of the principle every year. (You pay the same amount but that amount is worth less in real terms). Banks and capitalists obviously mald because they are losing a couple percent of profit (not losing money mind you, they still charge interest!! in fact some really awful loans make your interest rise with inflation)
The Gold Standard was originally there just so rich British bankers could literally put a hard cap on money and thus inflation. They even caused deflation, to the determent of the rest of the economy and especially poor debtors, just because they felt like making more money.
considering that debt is especially sensitive to inflation, yes definitely. With high inflation, debtors can pay back their debt easier since inflation eats a percentage of the principle every year. (You pay the same amount but that amount is worth less in real terms). Banks and capitalists obviously mald because they are losing a couple percent of profit (not losing money mind you, they still charge interest!! in fact some really awful loans make your interest rise with inflation)
The Gold Standard was originally there just so rich British bankers could literally put a hard cap on money and thus inflation. They even caused deflation, to the determent of the rest of the economy and especially poor debtors, just because they felt like making more money.