TOKYO -- Higher inflation is reducing the outstanding debt of the U.S. and European countries through currency depreciation, totaling a $4.5 trillion decrease in 2021 and 2022, according to Nikkei's analysis of macroeconomic data.
Though beneficial to government balance sheets, the "inflation tax" could burden consumers with unmanageable price hikes.
Datawatch
Inflation tax hits $4.5tn in U.S., Europe amid global price hikes
Consumers may ultimately pay for less government debt through devalued currencies
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