| Switzerland, Singapore and Hong Kong, which have actively kept their currencies low since the global financial crisis, could have achieved the same outcome with less currency intervention and declining current account surpluses if they had followed easier fiscal and monetary policies. The global economy would have benefited too.
For the major advanced economies and the world as a whole, insuffi cient aggregate demand—that is, too little spending—impeded recovery from the Great Recession of 2008–09. By manipulating their currencies to boost their net exports, many countries made a bad situation worse for their trading partners, which saw demand shifted away. Th e world needs policies that increase total demand rather than policies that fi ght over the allocation of the existing amount of demand.........................................Full Article: Source
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