When the central bank of some country prints large quantities of money, that county's currency loses value both in terms of the goods and services it buys and in terms of the amount of foreign currencies it can buy.

Question

Quizplus · Accepted Answer

Printing large quantities of money typically leads to inflation, which reduces the purchasing power of the currency both domestically (buying fewer goods and services) and internationally (decreasing its value against foreign currencies).

When the Central Bank of Some Country Prints Large Quantities