| Nobel Prize-winning economist James Tobin once joked that when it feels like everybody needs to devalue, it’s time for global monetary expansion. Tobin’s quip is germane to concerns over the intensification of ‘currency wars’ in recent weeks. US macroeconomic outperformance is driving up the US dollar and helping push down global commodity prices.
With global commodities typically elastic with respect to the US dollar, the appreciating greenback is working to intensify disinflationary, even deflationary, pressure outside the US, where macrofundamentals are less propitious...............................................Full Article: Source
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