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currency carry trade

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What is inflation? How it influences the currency rates?

Inflation is the sustained rise in prices in an economy over a period. Say, you had stuffed a $1 bill somewhere when you were a child and accidentally you come across it now. Can you buy what you desired at that young age now with the same $1 bill? Of course, it's not possible since the prices are not the same, then and now. It is nothing but inflation. And the same context can be interpreted in two ways. One, it is the depletion in purchasing power of the currency. Two, the increase in the price of the commodities. [...]

What is inflation? How it influences the currency rates?2019-06-29T09:41:12+04:00