Many ethical systems hold that agents earn merit and demerit through their good and bad deeds. Some of these ethical systems also accept merit transference, allowing merit to be transferred, in certain circumstances, from one agent to another. In this article, I argue that there is a previously unrecognized paradox for merit transference involving a phenomenon I call “merit inflation”. With a particular focus on Buddhist ethics, I then look at the options available for resolving this paradox. I conclude that (...) merit inflation poses a serious challenge for any ethical system that broadly permits the transfer of merit. (shrink)