The Modern Money Illusion: Inflation and Its Impact on Lenders

The Work of a Classic Economist Can Provide Insight on Inflation’s Impact and Where It Is Headed for Banks

Inflation has become all the rage again. Prices are up officially by 7% from a year ago. But depending on whom you ask, the increases have been even more substantial. One restaurant owner recently told me that prices for raw material food products and packaging for dine-out orders have more than doubled since the pandemic. As banks ponder how long this inflationary sp…