Is Debt Cancellation Making Inflation Worse?

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When economy is saturated as it is right now, any new spending is going to lift price levels. So if you tell people you no longer have to pay down your debt and instead you can use that money to go out and spend in the economy, that's going to worsen inflation. Goldman Sachs: Student loan forgiveness will have little to no impact on the economy or on inflation. Economic sociologist Charlie Eaton: This is going to have zero impact on inflation.

The world’s second-largest cinema chain incorrectly reported the identity of its largest shareholder, and ExxonMobil is contesting Vladimir Putin’s decree blocking the oil company from exiting Russia. Plus, economists are debating the impact that US president Joe Biden’s student loan forgiveness programme will have on inflation.

Mentioned in this podcast:

Cineworld incorrectly reported its largest shareholder

ExxonMobil contests Kremlin decree blocking its pullout from Russia

Joe Biden’s student debt cancellation triggers ‘inflationary fire’ fears

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The FT News Briefing is produced by Fiona Symon, Sonja Hutson and Marc Filippino. The show’s editor is Jess Smith. Additional help by Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.

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