Inflation Storyboard
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- This is where the money's printed.
- This is where the money's printed and the value of it is determined by how much it's in demand by the U.S. Government.
- It's important to know that printing more money won't compensate for high prices, as if everyone has more money, the prices will go up as well.
- However, depending on the state of the economy, and how much debt a country has, it may cause a country to print more money to compensate for debts, inflation, and other costly factors.
- Moreover, it's important to know that printing money to pay off debt will only make things like inflation in an economy worse.
- The reason being that, depending on the current economic situation, if the government prints too much money, this could possibly lower the value of it in the future.
- A currency's appreciation or depreciation rate depends on many factors like current interest rates, trade. and politics.
- To simple it down even more, think of it as supply and demand, this affects the value of the currency the most. Depending on who's regulating it through their policy.
- The more a country produces and exports, the stronger it's currency will be. This helps lower the inflation rate and increase the exchange rate.
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