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Has an increasing inflation got an effect on the value of the currency?

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Has an increasing inflation got an effect on the value of the currency?

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  1. You have to pay more with your currency to get the products or services you want, so say a can of Coke cost $1.00 a year go and after one year of high inflation levels a can of Coke costs $1.25. At the end the value of the currency decreased.


  2. The relative inflation rate  between two currency  will effect the exchange rate, but all currency inflate and usually the difference in the inflation rates are small compared to other things that effect the exchange rate, but not always.

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