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This is not true. Currency depreciation leads to price inflation. That's why your dollars (or euros) buy less things year over year.
by gasull 14y ago
This is not true. Currency depreciation leads to price inflation. That's why your dollars (or euros) buy less things year over year.
- icebraining 14y agoCurrency depreciation by increasing the supply is not the same as losing value relative to other currencies, which was what happened to BItcoins (since the supply is constant). And while both depreciations lead to price inflation, an loss of X% in the latter doesn't lead to an increase of the same amount in price inflation, because not all products completely depend on imports from other economic zones.