Finance: Inflation and the Federal Reserve: The devaluation of currency

This is the fourteenth in a series of articles dealing with “Inflation and the Federal Reserve.” The purpose of this series of articles is to explain, in detail, a historical basis of how the Federal Reserve attempts to monitor and control Inflation. The stated policy of the Federal Reserve is to keep inflation under control while, the same time, minimizing unemployment.

To better understand articles yet to come, this may be an appropriate time to discuss the relative juxtaposition between inflation and the value of a country’s currency. Stated one way, does inflation devalue the currency of a country?; or stated another way, does devaluing the currency create inflation?

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