Commentary
Currency devaluation is inflation. How the drop in the currency’s value comes about is another question, though ultimately for consumers and businesses the answer to it might not matter. When that price declines, it simply means the relative value of goods and services available to be exchanged for it has gone up. Once money is cheapened, real things become more valuable by comparison.
In an interconnected world, this also includes the relative exchange rates of one currency to the next. When any plagued denomination goes down to devaluation, others rise up against it. Should the US dollar be made much cheaper, for example, everyone knows this would lead to its downfall, a rapidly falling exchange value….
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