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To: expat_panama

Rising against a basket of currencies isn’t the same as rising against things people buy. It could be that the dollar is just losing value more slowly than the others.


10 posted on 08/11/2015 4:35:36 AM PDT by freedomfiter2 (Lex rex)
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To: freedomfiter2
Rising against a basket of currencies isn’t the same as rising against things people buy.

It's the difference between devaluing and inflation.

de•val•ue

(diˈvæl yu)

v. -val•ued, -val•u•ing. v.t.
1. to set a lower exchange value on (a currency).

in·fla·tion

inˈflāSH(ə)n/
noun
noun: inflation Economics
a general increase in prices and fall in the purchasing value of money.
"policies aimed at controlling inflation"

We hear pundits and posters confuse these terms a lot.

32 posted on 08/11/2015 6:32:34 AM PDT by expat_panama
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