> It would help both the government and the businesses mostly affected by Covid to run high inflation for a few years.
The government is screwed if interest rates are high. They roll over their debt on an ongoing basis, and if interest rates go to even just ~5 percent then a huge chunk of the annual tax revenue will go to just repaying interest on the debt. The government (read: the people) cannot afford to have that happen unless drastic spending cuts accompany it. Recent events show that most legislators are interested in ramping up spending, not ramping down, which basically means that inflation would have serious consequences for the budget and economy.
The government is screwed if interest rates are high. They roll over their debt on an ongoing basis, and if interest rates go to even just ~5 percent then a huge chunk of the annual tax revenue will go to just repaying interest on the debt. The government (read: the people) cannot afford to have that happen unless drastic spending cuts accompany it. Recent events show that most legislators are interested in ramping up spending, not ramping down, which basically means that inflation would have serious consequences for the budget and economy.