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Inflation is a general rise in prices. A fall in currency value is one reason that would occur.

thaumasiotes 4y ago
No, a general rise in prices and a fall in currency value are one and the same thing. The meaning of "a fall in currency value" is nothing other than "a general rise in prices".
- mjburgess 4y ago
  A currency can maintain its value against others, and against certain commodities whilst a general price rise occurs. Talking in terms of the currency often puts the issue backwards.
  - thaumasiotes 4y ago
    > A currency can maintain its value against others, and against certain commodities whilst a general price rise occurs. So? It's not maintaining its value. Who cares whether it's maintaining its value measured in baht? That would just mean the baht is also losing value.
    - mjburgess 4y ago
      No, it wouldnt. Because the UK can experience (temporary) inflation whilst Thailand not. These are the kinds of confusion which arises when you offer a theory of why inflation occurs (currency changes), rather than a definition.
      - thaumasiotes 4y ago
        The pound sterling can experience inflation while the Thai baht doesn't, that's true. And it's also true that the pound sterling can experience inflation while maintaining its exchange rate against the Thai baht. But those two things cannot happen simultaneously; if the pound is experiencing inflation and maintaining its exchange rate with the baht, then the baht is also experiencing inflation.
        mjburgess 4y ago
        currencies dont experience inflation... it's prices which inflate a currency is "devalued" by, eg., money printing, only in the sense that eventually the new cash drives prices up when speaking about "inflation" we're always talking about some sets of prices... even in the case of "general inflation", this does not mean global prices for all products -- it means a certain subset, eg., CPI so the GBP can maintain its value in many senses whilst the person-on-the-street experiences CPI.. the value of GBP isnt only in "general purchasing power relative to market relative to baskets" trivially, arbitrage opportunities do exist, markets aren't perfectly efficient.. so there can be cases where UK CPI inflation is "ahead of the global curve"

No, a general rise in prices and a fall in currency value are one and the same thing. The meaning of "a fall in currency value" is nothing other than "a general rise in prices".

mjburgess 4y ago
A currency can maintain its value against others, and against certain commodities whilst a general price rise occurs. Talking in terms of the currency often puts the issue backwards.
- thaumasiotes 4y ago
  > A currency can maintain its value against others, and against certain commodities whilst a general price rise occurs. So? It's not maintaining its value. Who cares whether it's maintaining its value measured in baht? That would just mean the baht is also losing value.
  - mjburgess 4y ago
    No, it wouldnt. Because the UK can experience (temporary) inflation whilst Thailand not. These are the kinds of confusion which arises when you offer a theory of why inflation occurs (currency changes), rather than a definition.
    - thaumasiotes 4y ago
      The pound sterling can experience inflation while the Thai baht doesn't, that's true. And it's also true that the pound sterling can experience inflation while maintaining its exchange rate against the Thai baht. But those two things cannot happen simultaneously; if the pound is experiencing inflation and maintaining its exchange rate with the baht, then the baht is also experiencing inflation.
      - mjburgess 4y ago
        currencies dont experience inflation... it's prices which inflate a currency is "devalued" by, eg., money printing, only in the sense that eventually the new cash drives prices up when speaking about "inflation" we're always talking about some sets of prices... even in the case of "general inflation", this does not mean global prices for all products -- it means a certain subset, eg., CPI so the GBP can maintain its value in many senses whilst the person-on-the-street experiences CPI.. the value of GBP isnt only in "general purchasing power relative to market relative to baskets" trivially, arbitrage opportunities do exist, markets aren't perfectly efficient.. so there can be cases where UK CPI inflation is "ahead of the global curve"