| The European Central Bank has finally begun to engage in quantitative easing. The euro depreciated on the news, which is good for the Europeans but bad for the rest of the world, right? It's another currency war – a zero sum game leading to, at best, nothing but debased currencies . At least that's what we've been told.
I think that's wrong. A currency war right now will be win-win. Let's start with the concerns about currency wars. The first worry is the beggar-thy-neighbour effect. If a country's exchange rate falls, demand is sucked from other countries for no net gain. So, concern number one is that a depreciated currency is contractionary for others...............................................Full Article: Source
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