Is this statement true?
All other things being equal
A countries currency will devalue at the rate of it’s inflation.
thanks
Brendon
Is this statement true?
All other things being equal
A countries currency will devalue at the rate of it’s inflation.
thanks
Brendon
Well, since inflation is by definition the measure of the decline of a currency in regards to its purchasing power, the answer is yes.
Inflation measures how much additional money is need to equal the buying power of a previous period. Maybe inflation will hit 5.8% this year, so 100 dollars last year would equal 105.80 this year.
But, there ae many causes of inflation. To ask your question is to simplify it too much.