Solving the problem of student loan debt through hyperinflation!

Mounting student debt is a problem in many countries that allow students to finance their university education through loans - some students leave university owing staggering amounts of money. But a group of American economics students have found a possible solution and they test it out on their fellow students.

The youtube video of their project can be seen here (and was originally sourced from E. Frank Stephenson at the Division of Labour blog). It raises a number of interesting points, and is a good example of “winners” from inflation. However, very few of those who saw inflation as a good thing were able to appreciate that they had to participate in the wider economy, and not just receive the benefit of their loan becoming easier to pay back. One would hope that most of our students would have something intelligent to say if they were presented with the proposal!