| As quantitative easing spreads from country to country, investors are left nervous and discouraged: and stagnation follows. There is every sign that the European Central Bank’s €1.1 trillion stimulus package is going to unleash a long period of beggar-thy-neighbour currency wars. Maybe not quite in the way that wrecked the global economy in the 1930s – triggering retaliatory trade tariffs and sending industrial production spiralling downwards.
But enough to dampen the enthusiasm of exporting companies which might be thinking of expanding output. This is a war that pits the central banks of the world’s major trading blocs against each other and, as currencies yo-yo in value, creates a nervousness and caution among investors that can create years of stagnation...............................................Full Article: Source
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