| Competitive devaluations are back in fashion – expect more currency-war rhetoric in the months ahead. The implications for investors will be profound as more countries engage in a 1930s-style zero-sum game to win a bigger share of anaemic global growth.
This bout of devaluations began with Japan in 2012, when the yen depreciated by around a fifth in a matter of months. Interestingly, the impact on Japanese export volumes has scarcely been perceptible, reflecting a loss of the will to compete in Japanese business – witness the decimation of the Japanese electronics industry at the hands of Korean and other competition...............................................Full Article: Source |