11-12-2017, 11:31 AM
(This post was last modified: 11-12-2017, 11:34 AM by Director Michael.)
Regarding fluctuations in the buying power of a nation's currency that result from economic circumstances, changing national conditions, and governmental economic policies, the Torah Sages treated inflation as a fact of life to be dealt with. The Torah Law principle that "the law of the land is the law" has limited scope, but it does include a nation's economic matters.
As such, the extensive Rabbinical writings that deal with the issues of inflation and currency devaluation are focused on the impact which they have over time upon monetary transactions between the citizens. For example, between people, it can impact on:
- payment of debts with a contracted fixed interest rate
- payment of debts that are contracted as interest-free
- using physical commodities that fluctuate in value as the means to pay debts
- delayed payment of contracted wages
- making restitution for a past theft, when it is no longer possible to return the stolen goods
As such, the extensive Rabbinical writings that deal with the issues of inflation and currency devaluation are focused on the impact which they have over time upon monetary transactions between the citizens. For example, between people, it can impact on:
- payment of debts with a contracted fixed interest rate
- payment of debts that are contracted as interest-free
- using physical commodities that fluctuate in value as the means to pay debts
- delayed payment of contracted wages
- making restitution for a past theft, when it is no longer possible to return the stolen goods