通脹跟currency depreciated

Their concepts are surely different BUT these concepts are actually correlated.

Domestic inflation -->price of exported goods rises --> By law of demand, quantitiy demanded for exported goods falls --> Export falls --> demand for domestic currency falls --> currency depreciation

if you have any questions, it is welcome to ask me through my email ([email protected]) or through my forum established in my web. (www.leosir.net)

Leo Sir

前者是指一個國家或地區內的消費物價的變動.

後者是指國與國之間貨幣的相對價值的變動.

Currency depreciation is the loss of value of a country's currency with respect to one or more foreign reference currencies, typically in a floating exchange rate system. It is most often used for the unofficial increase of the exchange rate due to market forces, though sometimes it appears interchangeably with devaluation.




Inflation is a rise in the general level of prices over time. It may also refer to a rise in the prices of a specific set of goods or services. In either case, it is measured as the percentage rate of change of a price index.

Mainstream economists believe that high rates of inflation are caused by high rates of growth of the money supply. Views on the factors that determine moderate rates of inflation are more varied: changes in inflation are sometimes attributed to fluctuations in real demand for goods and services or in available supplies (i.e. changes in scarcity), and sometimes to changes in the supply or demand for money. In the mid-twentieth century, two camps disagreed strongly on the main causes of inflation at moderate rates: the "monetarists" argued that money supply dominated all other factors in determining inflation, while "Keynesians" argued that real demand was often more important than changes in the money supply.