Train wreck said:
Well what are you trying to prove with the charts then? Is the US dollar not following in the footsteps of every other major fiat currency that has ever existed? Rome, Britian, Persia, China, Neopolan's Europe, Wiermer republic Germany, Hilter's Europe, Russian Ruble, I mean all of these currencies had higher purchasing power then fell as time, inflation, wars, famine etc etc eroaded that currency. |
I'm trying to prove the claim that debasing your currency improves exports is false.
In some senses, Mr. Khan is right that in that debasing and inflation are not one and the same. Well, they are, but he's referring to price increases (which is a symptom of inflation) not being synonymous with debasement. Which is true, after all, it's about the money demand/supply, vis-a-vis demand/supply for goods within the economy. The fact that the US dollar is worth 2% of what it was in 1913 is even more astounding, when you consider the sheer increase in the number of goods available.
