How can the dollar be worth more relative to the Euro and some other currencies, but inflation (where the dollar is worth less for the American Consumer) still be happening at such high rates consecutively?

Question

How can the dollar be worth more relative to the Euro and some other currencies, but inflation (where the dollar is worth less for the American Consumer) still be happening at such high rates consecutively?

In: 0

Answer 1

Imagine the US and Europe are having a farting battle to fill up a balloon, but the farts are inflation caused by the Russian food they are last night. The US’s balloon has less farts in it and is less full, because the US ate less Russian food. Because a full balloon breaks easier, the rest of the world is deciding to bet on the US’s balloon being less likely to burst, so the pick that over the fuller one. Making the US’s balloon more valuable. #likeafiveyearold