Relationship: Inflation and currency appreciation are in opposition. Inflation will lead to currency depreciation, making it impossible to achieve currency appreciation.

Related introduction:

1. Inflation:

Because the money supply is greater than the actual demand for money, that is, the actual purchasing power is greater than the output supply, resulting in currency depreciation. This caused a sustained and widespread rise in prices over a period of time. The essence is that the total social demand is greater than the total social supply (demand is far greater than supply).

2. Currency appreciation:

Under the gold standard, the legal gold content of the domestic currency is increased and its price relative to foreign currencies is increased. Some countries adopt the method of external appreciation of their currencies to prevent foreign currency shocks and resist the import of foreign inflation.

Extended information

The most direct manifestation of inflation is the devaluation of banknotes, rising prices, and reduced purchasing power. Deflation is often accompanied by declining production, shrinking markets, lower corporate profit margins, reduced production investment, increased unemployment, declining income, and weak economic growth. Mainly manifested by low prices, with prices of most goods and services falling.

No matter what type of inflation, there is only one direct cause, that is, excessive money supply. Using too much money supply to correspond to a given amount of goods and services will inevitably lead to currency depreciation, rising prices, and inflation.

Baidu Encyclopedia - Currency Appreciation

Baidu Encyclopedia - Inflation