: Purely theoretical question about taking a loan If I take a loan of 00 by agreeing to pay + 10% interest each month what will happen if lets say the value of doubles 4 months after? would I owe more money to the

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Some loans have a variable interest rate which can protect the lender from inflation and the borrower from deflation. How much protection it offers depends on how closely the interest rate follows the inflation/deflation rate. Most variable rate loans have limits on how much and how frequently they can adjust.

In your deflation scenario, the lender comes out ahead with a fixed rate loan already, since those future dollars are worth more than current dollars. The borrower doesn't owe more dollars, but the value of the dollars they owe is higher.