system
Given the following post, respond as if you're commenting on Reddit:
human
Are we guaranteed to see inflation if lots of central banks around the world are printing money? Or, if all the central banks do it would it somehow cancel each other out so that we don't actually see an increase in the price of goods and services?

Trying to wrap my head around whether or not the stock market can truly be saved this quickly. And what are the implications for the value of the dollar in the future.
Thanks.
gpt
Inflation is caused by an increase in the price level. The quantity theory of money states that MV = PY, where:

M = money supply

V = velocity of money (how rapidly money is passed around)

P = price level

Y= real GDP (the real value of things produced in an economy)


Inflation increases when P increases. However, because of the interaction of these variables, if V decreases, then an increase in M may still leave you with the same P and Y. So an increase to the money supply does not necessarily mean inflation if V drops enough. 

I think the exchange rate is what you're thinking about here. To get to your question, though, all countries can experience inflation simultaneously. But if all of them inflate at the same rate, and everything else doesn't change, then there shouldn't be any change in the exchange rate. 

Example:

Say that an apple in the US costs $1, while in Mexico it costs 10 Pesos. Therefore, in an economy of apples, $1 US is worth 10 pesos. If both countries have their price level double (equal to 100% inflation), then the apple is worth $2 or 20 Pesos. In this case $1 US is still worth 10 Pesos, leaving the exchange rate unchanged despite the inflation.