Is this statement true?

brendonvdh · February 27, 2008, 6:24am

All other things being equal
A countries currency will devalue at the rate of it’s inflation.

thanks
Brendon

rhodytrader · February 27, 2008, 7:44am

Well, since inflation is by definition the measure of the decline of a currency in regards to its purchasing power, the answer is yes.

yeschef · February 27, 2008, 10:21am

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.