| Central banks are not waging a currency war. Their actions, which may seem warlike on the surface, arise from far more benign motives. Many Central Banks have mandated inflation targets, and in most regions inflation is below target. With a slowing global economy, there had been few ways to keep inflation up to code.
But a turn in U.S. monetary policy has made it possible for Central Banks to meet their policy goals by reflating their domestic economies. Part of the issue is that the central banks who have missed their goals are the global economic heavyweights, whose policy shifts have a more potent effect on global markets than others. Europe is struggling with high unemployment, deflation, and a Greek epic with seemingly no end...............................................Full Article: Source
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