Value of a currency is its power to purchase goods, and depends upon its quantity relative to the total goods produced in the country. If goods produced are constant, and quantity of currency is increased (by printing it), its value will decline, that is, goods will become costlier as same denomination currency notes will be able to buy fewer goods now. This is called general inflation. महँगाई। (prices of individual goods may increase or decrease depending upon demand supply mismatch specific to goods also.)
Rupee Dollar Exchange Rate Explained
Rupee Dollar Exchange Rate Explained
Rupee Dollar Exchange Rate Explained
Value of a currency is its power to purchase goods, and depends upon its quantity relative to the total goods produced in the country. If goods produced are constant, and quantity of currency is increased (by printing it), its value will decline, that is, goods will become costlier as same denomination currency notes will be able to buy fewer goods now. This is called general inflation. महँगाई। (prices of individual goods may increase or decrease depending upon demand supply mismatch specific to goods also.)