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/biz/ - Business & Finance

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18112300 No.18112300 [Reply] [Original]

can a currency hyperinflation cause another currency to inflate too ?

>> No.18113530

>>18112300
yes, in specific conditions

>> No.18113555

>>18113530
explain

>> No.18113970

>>18113555
5 niggers in the club, theyre all fucking each other

>> No.18114094

>>18113555
You need to have a reserve currency that other central banks hold as foreign exchange reserves, like USD.. When the reserves go down (in terms of USD value), their home inflation goes up. And to keep the exports to at the same level, they need to match the inflation of their currency to that of USD, otherwise their exports go down. Usually if this is a bumfuck country that your country has a small % of total exports to, they won't mind. If it's a big trading partner like the US they will devalue their own currency (inflate it) to prevent GDP falling. This scenario happened in the currency wars in 1930s between west European countries and North America. Anyway this scenario doesn't cause hyperinflation in other countries, at least to my knowledge, but we might see something new this time around.

>> No.18114269
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18114269

>>18112300
Yes if the usd inflation goes from 2% to something like 7% currencies like argentina will go from 50% inflation to >1000% inflation

>> No.18114629

>>18112300
Forbes sites 2011/03/08 fe...
Web results
Fed Exports Inflation, Stokes Revolutions - Forbes

We are the reserve currency. Do DYOR. If we export too much it ends the dollar.

>> No.18114669

>>18112300
where'd you get this picture of my father