The rest of the world also printed a lot of money. In a globalized economy inflation does remain isolated in the country that it originates in. Especially when the country has a lot of exports.
Normally the exchange rate divergence could be countered by increasing interest rates in the country with the weakening currency. But today it appears most countries are not willing to do this to the extent necessary.
Normally the exchange rate divergence could be countered by increasing interest rates in the country with the weakening currency. But today it appears most countries are not willing to do this to the extent necessary.