Inflation is triggered by the increase in the money supply by the Central Bank (print money). It leads to an increase in prices and a fall in purchasing power while increasing the tax revenues of the state.
As the amount of debt remains unchanged, it falls in proportion to the general price level.
For this reason, large debtors, i.e. states, corporations and the financial economy, are always interested in higher Inflation in difficult times.
The wealthy part of the population is always the winner of an inflation. They can exchange the money in tangible assets, borrow larger sums and exchange them in fixed assets and tangible assets.
As Inflation rises, monetary debt is becoming less and less valued, but the value of the tangible assets is preserved.
The biggest winner, however, was the US MoneyMonarchy, because they got their loans paid in gold mark, foreign exchange or in commodities.
Employers also exploit this because labour costs are becoming relatively lower and adjustments are made very slowly.
Losers in every inflation are the poor, who live from hand to mouth. Pensioners are also among the losers because their pensions have less and less purchasing power.
The Reichsbank alone printed on 25. October 1923 120 Billion Mark. 400,000 civil servants lost their jobs.
In the subsequent currency reform, many middle class people lost their fortune because they had bought war bonds to co-finance the war. By law, the government decided that only 2.5% of the war bonds will be paid out.
The German state has thus facilitated 97.5% of its debts.