WACC is the weighted average cost of capital. It is the minimum return that a company must earn to satisfy all the stakeholders (viz lenders and shareholders) who give money to the company. Lenders demand
Basic rule is that nominal GDP growth should be more than the interest rate for govt debt to not balloon. If the interest rate in a country is 6% then the nominal GDP growth rate
Two main ideas to keep in mind about inflation’s impact on money and other assets are: a) ‘Real’ assets keep getting more expensive. Hence owning real assets is better than owning cash.b) Cash keeps losing