27.10.2014 - Are we really in currency wars?
The effects of Federal Reserve and other central banks' policies on exchange rates are back in the news. A Bloomberg News headline, "Currency wars evolve with goal of avoiding deflation," is typical. This implies that changing the value of our currency, relative to other nations, is driving monetary policy. But is this really the case? Are we really in currency "wars?" Several readers have asked that. The answer is yes and no. That sounds like waffling, but it reflects the reality that effects of monetary policy on exchange rates vary greatly between countries. It is a dangerous error to generalize...............................................Full Article: Source
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