05.02.2015 - Currency wars: Lose-lose or win-win?
The term "currency wars" has been bandied about ever since Guido Mantega, the Brazilian finance minister, used it in 2010. He was complaining that quantitative easing (QE) by the US was weakening the dollar, and prompting a response from other countries that did not want to lose export competitiveness. This time round, the dollar is strengthening, but the term is being used again. Currency volatility is on the rise, albeit from a low base. And David Woo of BofAML thinks this is a bad thing. In a research note, he argues that "For many countries facing zero interest rates and binding fiscal constraints, the only policy tool left at their disposal to stimulate growth is a weaker exchange rate."..............................................Full Article: Source
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