The inflation difference between two countries, or in general against the major countries, are an important factor effecting exchange rates in the long run. Here you can learn why.
A country that has lower inflation than the other tend to see its currency strengthened in the longer term. This effect can be seen in many low inflation countries, such as German before the arrival of the Euro, which historically had a low inflation and strong national currency.
Below, some of the most common questions about inflation are answered by our currency experts: br>
- What is inflation and how is it calculated?
- What drives the inflation?
- Exchange rates and inflation, all you need to know.
- Inflation and commodity prices
- Statements from central banks
- Money supply and it’s impact on inflation
- Inflation and bank lending
- Long-term interest rates and inflation levels
Anything you want to add about inflation? Please contact us and we’ll get back to you within 24 hours.