| What goes around comes around. In September 2010, Guido Mantega, then Brazil’s finance minister, popularised the term “currency wars”. He claimed governments around the world — led by the US — were engaging in competitive devaluations of their currencies . Brazil and other emerging markets, which were doing better at the time, suffered overvalued currencies as a result.
Fast forward to today and the US dollar has appreciated on a trade-weighted basis at a faster pace for the past eight months than during any similar period since the end of the Bretton Woods system in 1971. This year, more than 20 central banks have eased monetary policy, including the European Central Bank, which at long last launched its quantitative easing programme...............................................Full Article: Source
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