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by ffsm8 249 days ago
Isn't a devaluation the same as inflation, just measured against other currencies?

Basically inflation measures against itself at an earlier time, devaluation measures against other currencies at the same moment. So it both describes the fact that the currency in question is using purchasing power, measured from different points of view.

But I'm not knowledgeable on the topic, I just mentally stumbled a little when reading this thread which seemingly (to my interpretation of what was written) made them sound like different concepts entirely.

1 comments

It's inflation fornouschains foreign products, but also makes us products cheaper to the rest of the world which means it's an incentive for exports.

Might have had some interesting effects on the economy if we didn't simultaneously have tariffs making it so that 1) it's hard to buy the machinery to increase US industrial capacity, and 2) nobody wants to invest in the US economy because tariffs cause economic slowdowns.