You Can't Inflate Your Way Out of Debt

http://meganmcardle.theatlantic.com/archives/2009/08/you_cant_inflate_your_way_out.php

"...Inflating your way out of debt works if you're planning to run a pretty sizeable budget surplus--big enough that you won't have to roll your debt over. Otherwise, your debt starts to march upward even faster, as old notes come due, and you have to roll them at ruinous interest rates. Hyperinflation might wipe out that debt, but also your tax base..."