Current location - Loan Platform Complete Network - Foreign exchange account opening - Does inflation lead to currency devaluation or does currency devaluation lead to inflation?
Does inflation lead to currency devaluation or does currency devaluation lead to inflation?
First of all, neither inflation nor currency devaluation has led to inflation. This expression is wrong.

Second, the relationship between inflation and currency depreciation is as follows:

1. Currency depreciation is only a manifestation of inflation. Inflation generally refers to the phenomenon that the circulation of paper money exceeds the actual amount of money needed in commodity circulation, which leads to the devaluation of paper money and the rise of prices.

2. Currency depreciation means that the value contained in or represented by unit currency declines, that is, the price of unit currency declines.

There are many reasons for currency depreciation, one is inflation, the other is the rise of foreign exchange rate, or it may be because the amount of money issued by the state is more than the amount of money needed in real life.

3. Inflation refers to the phenomenon that prices keep rising in an all-round way in economic operation. The circulation of paper money exceeds the actual amount of money needed in circulation, which is one of the main reasons leading to inflation.

In addition to currency depreciation, inflation may also be manifested as rising prices and overheating of the economy.

Extended data:

The difference between inflation and currency depreciation;

1, inflation is just a kind of currency depreciation with non-price factors, in addition, there are currency depreciation with price factors.

The currency issued by banks exceeds the market demand, which leads to price increase. This is inflation, not currency depreciation due to price factors.

Banks issue money according to market demand, no matter how much they issue, there is no inflation.

2. With a clear understanding of the background of China's industrialization, we can accurately realize that the sustained price increase in China at this stage is the nature of price adjustment, not the inflation caused by currency.

In this process, there is only currency depreciation caused by rising prices, and there is no currency depreciation caused by non-price factors. For this price factor, currency depreciation can only bear the realistic pressure brought by market price adjustment.

Baidu encyclopedia-inflation

Baidu Encyclopedia-Currency devaluation

People's network-the harm caused by inflation

People's Daily Online-Jiefang Daily: Open the fog to see "inflation"