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fractal_flowers

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How can money be both devalued and expensive?

An acquaintance who works in finance said that the USD was devalued during COVID but hasn’t yet experienced much inflation except in household goods because money is still expensive. What does that even mean? How can money be expensive? And how does that differ from being valued/devalued?...

fractal_flowers OP ,

Ah, I see. So being “devalued” is like mixing base metals in your gold coins, while “cheap money” is like loaning out the treasury. Both contribute to inflation, but in different ways.

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