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<p>[QUOTE=&quot;sakata, post: 2701736, member: 23778&quot;]I did not say next day.&nbsp; It took a quite (forget hot long) and it was done in two steps.&nbsp; But they did devalue it.&nbsp; You are confusing inflation with devaluation but they are not the same.</p><p><br /></p><p>Sure a dollar still bought the same amount of domestic produce, at least initially.&nbsp; But eventually prices had to catch up with the devaluation.&nbsp; Don&#039;t forget, back then the world was still on a gold standard for the most part and was not driven by fiat.&nbsp; So it most definitely was devalued 42% relative to all other currencies. Imported products cost 75% more because it took that much more in&nbsp; dollars to buy them.</p><p><br /></p><p>In such a scenario prices of domestic produce will not go up initially but overall prices will increase by an amount which is dependent on the proportion of all goods which are imported.&nbsp; This causes an over increase in costs.&nbsp; Hence the dollar buys less and is devalued.&nbsp; It takes a while for inflation to catch up, but it does.[/QUOTE]</p><p><br /></p>

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