Let us now leave the example of the isolated State and turn our attention to the international movements that arise from a fall in the value of money due to an increase in its amount. Here, again, the process is the same. There is no increase in the available stock of goods; only its distribution is altered. The country in which the new mines are situated and the countries that deal directly with it have their position bettered by the fact that they are still able to buy commodities from other countries at the old lower prices at a time when depreciation at home has already occurred. Those countries that are the last to be reached by the new stream of money are those which must ultimately bear the cost of the increased welfare of the other countries. Ludwig Von Mises
About This Quote

Economics is all about supply and demand. If there is more supply than demand, the price goes down. When there is a shortage of something, the price goes up. If you have too much of something to begin with, the price will remain the same or go down.

Silk being an important commodity in the world, it is always in high demand. As a result, silk producers are forced to raise their prices if they want to keep their customers satisfied. If they do not, then they will suffer losses.

Source: The Theory Of Money And Credit

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