It is well known that debt can cause deflation, especially during crisis: to repay their debts agents sell their goods which causes a fall in prices.
But if there is no crisis and agents "have the time" to repay their debt, would it be possible to have the opposite mechanism, inflation: to repay their debts (and make their investments profitable) agents would sell their products for an higher price causing a raise in prices?
In the general case it seems difficult because this could destroy market shares if there is competition.
But in some cases I wonder if it could:
- monopolys (especially state monopolys, and this would be a kind of hidden tax),
- competition but with all competitors in debt so that all have to sell at higher prices to survive,