| From Guardian: It's easy to see why some policymakers hope favourable exchange rates could put America's economy back on track.Amid growing fears of a Japanese-style malaise, the other options are either off the table or likely to be ineffective.
Political gridlock and soaring debt have stymied an effective second stimulus, and monetary policy has not reignited investment. But weakening the dollar to boost exports is a risky strategy – it could result in exchange rate volatility and protectionism; worse, it invites a response from competitors. In this fragile global economic environment, a currency war will make everybody a loser...........................................Full Article: Source
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