Exchange rate and Inflation: Conclusions
Exchange rate and Inflation: Conclusions
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External question — Economics Stack Exchange
Author: Porcupine
Original post: https://economics.stackexchange.com/questions/57158
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
The value of
$100
in 2000 in German Currency increased to
$155.82
due to inflation (refer:
Value of 2000 Euro (Germany) today - Inflation Calculator
)
The value of
$100
in 2000 in Indian Currency increased to
$417.56
due to inflation (refer:
Value of 2000 Indian Rupees today - Inflation Calculator
)
The exchange Rate between INR and EURO in the period from 2000 to 2023 changed by +(89.72-42.89)/42.89 = +109.18% (Refer:
Euro to INR history Feb 2000 - Jun 21, 2023 Statista
)
Request
What general conclusions can we draw from these statements? (explanations with assumptions would be nice)
My attempt
The value of Indian currency depreciated faster than that of German currency but the exchange rate didn't depreciate as fast. But, what does it mean? and why did this happen?
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Quoted from Forex.com.bd-Editorial External question — Economics Stack Exchange Author: Porcupine Source score (net votes, not local likes): 0 Original post: https://economics.stackexchange.com/questions/57158 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. The value of $100 in 2000 in German Currency increased to $155.82 due to inflation (refer: Value of 2000 Euro (Germany) today - Inflation Calculator ) The value of $100 in 2000 in Indian Currency increased to $417.56 due to inflation (refer: Value of 2000 Indian Rupees today - Inflation Calculator ) The exchange Rate between INR and EURO in the period from 2000 to 2023 changed by +(89.72-42.89)/42.89 = +109.18% (Refer: Euro to INR history Feb 2000 - Jun 21, 2023 Statista ) Request What general conclusions can we draw from these statements? (explanations with assumptions would be nice) My attempt The value of Indian currency depreciated faster than that of German currency but the exchange rate didn't depreciate as fast. But, what does it mean? and why did this happen?
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