How can money be both devalued and expensive? (lemmy.ml)

submitted 1 week ago by fractal_flowers@lemmy.ml to c/asklemmy@lemmy.ml

17 comments fedilink hide all child comments

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?

I would think "money is expensive" means something along the lines of "there isn't much liquid cash", but I thought the money injected into the economy was liquid cash.

Would someone more into finance/trading than me explain how this is possible? Thanks!

you are viewing a single comment's thread
view the rest of the comments

[-] HobbitFoot@thelemmy.club 1 points 1 week ago

Not quite. Cheap money is more that a loan doesn't cost that much money to pay back. It isn't the treasury loaning out the money, but individual banks judging based on inflation.

this post was submitted on 08 Sep 2024

50 points (94.6% liked)

Asklemmy

43394 readers

1414 users here now

A loosely moderated place to ask open-ended questions

Search asklemmy 🔍

If your post meets the following criteria, it's welcome here!

Open-ended question
Not offensive: at this point, we do not have the bandwidth to moderate overtly political discussions. Assume best intent and be excellent to each other.
Not regarding using or support for Lemmy: context, see the list of support communities and tools for finding communities below
Not ad nauseam inducing: please make sure it is a question that would be new to most members
An actual topic of discussion

Looking for support?

Looking for a community?

Lemmyverse: community search
sub.rehab: maps old subreddits to fediverse options, marks official as such
!lemmy411@lemmy.ca: a community for finding communities

~Icon~ ~by~ ~@Double_A@discuss.tchncs.de~

founded 5 years ago

MODERATORS