, Columnist
Inflation Is the Way to Pay Off Coronavirus Debt
By letting prices rise faster, the Fed can ease the burden of heavy borrowing.
Go even bolder.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
The coronavirus pandemic and the depression that follows will leave the U.S. with a lot of unpayable debts. Consumers who lose their jobs will have difficulty making payments on credit cards, auto loans and student loans. Businesses that lose sales will default on loans and bonds.
In a bygone era when the economy was less dependent on a web of debt obligations, this might not have mattered as much. But the U.S. economy has loaded up on debt over the years: