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how currency devalues?? how currency devalues??

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Old Tuesday, November 02, 2010
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@ Out of place

You need a very simple answer? OK..
The worst ever impact is when you increase the supply of money, it will increase the inflation. Zimbabwe is a good example to be quoted. Money supply was increased a lot (because they thought they can control the inflation in this way and they can increase the purchasing power) but Zimbabwe saw a Hyperinflation in return.

This is one way which devalues the money.
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