Effect of inflation rates of one country on another?

Question

How do the inflation rates of one country effect the inflation rates on another. For example, if France's inflation rates rapidly increase, what is the effect on the inflation rates in Britain?

Answer 1

It depends on the exchange rate regime between the currencies of the two countries, as well as on trade and capital flows between them. In the case of Britain and France (a free float and considerable trade), the direct effect is barely discernible; inflation in each country is determined primarily by domestic factors (economic growth and policies of the respective central bank). British consumers may show a preference to French goods over British goods if the euro weakens against the pound (and vice versa), but this weakening may or may not have anything to do with inflation in both countries.

Answer 2

France and Britain have different currencies. As such, the effect of a difference should be minimal, unless the inflation becomes high enough and variable enough to create uncertainty within a society. In that circumstance, people reduce or stop investing because they cannot predict the outcome of their choices. In that case, investment may flee a high inflation nation for a low inflation state. Such added investment will lower, temporarily, the prospective real required return in the low inflation economy, but not affect its inflation.

Answer 3

Unfortunately economics is not defined as study of nature, composition, properties, laws and classification of wealth. No efforts are made to study general poperties of wealth. Knowledge of one general property of wealth is very important to answer your question.
Like matter and energy, wealth also moves from higher concentration or level to lower concentration or level till equilibrium is reached. To understand this movement of wealth, I will cite this example: In a costlier market, money is more concentrated and in a cheaper market goods are concentrated. When two markets are connected, money or buyers move from costlier markets (higher concentration) to cheaper markets (lower concentartion) and goods move from cheaper ( higher concentration) to costlier markets (lower concentration).
When there is inflation in one country, its goods become costly. The goods from neighbour countries start flowing in because they are concentrated there. Money starts moving out. This movement of wealth soon brings inflation under check. This would happen only when free trade is practised by both countries.