EUROSPENDINGEuro Economics
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2026-05-23

Currency debasement, explained

Why the euro in your pocket buys less each year, how money-supply growth and inflation connect, and where to watch it in the data.

"Debasement" once meant mixing cheap metal into gold coins. The modern version is quieter: the supply of money grows faster than the goods and services it can buy, and each unit buys a little less over time.

How to see it

Why it matters

Savers and wage earners hold their wealth in euros. If prices rise faster than wages and interest, real purchasing power falls — even when the headline economy looks stable. This is not a forecast; it is arithmetic you can read directly from the inflation, money-supply and exchange-rate series on this site.

The figures here are official ECB and Eurostat data. We present them and let you draw conclusions.

#analysis