How does a high inflation rate affect banking revenues?
Zen asked:
U.S had been spending money lavishly recently. Continuing pumping more cash into the financial system. This will result in higher inflation. The question is: Will a high inflation rate affect U.S banking revenue, how?
This entry was posted
on Thursday, June 25th, 2009 at 12:00 am and is filed under Economics.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
U.S had been spending money lavishly recently. Continuing pumping more cash into the financial system. This will result in higher inflation. The question is: Will a high inflation rate affect U.S banking revenue, how?
June 25th, 2009 at 2:18 pm
It will raise reported revenues because everything is expressed in current dollars.
June 27th, 2009 at 1:03 pm
High inflation is good for borrowers and bad for lenders so therefore banks would lose money.