Be careful what you wish for, you might be surprised by unintended consequences.
"Currency War Erupts, Threatening to Ripple Across Global Markets"
By Katherine Greifeld July 20, 2018 2:18 PM Updated on July 21, 2018
"The currency war has arrived.
So say some of the best and brightest in the $5.1 trillion-per-day foreign-exchange market. U.S. President Donald Trump on Friday accused China and the European Union of “manipulating their currencies and interest rates lower.” The comments came after the yuan plunged to its lowest level in a year, with little sign of China’s central bank intervening to stem the slide. They also follow a decline in the euro this year and add to the calculus that European Central Bank policy makers might need to consider when they meet next week.
"quicktake
Currency Wars
ByLucy Meakin Updated on April 16, 2018 11:06 AM
https://www.bloomberg.com/quicktake/currency-wars
"Central bankers and finance ministers aren’t usually the ones who fight wars. But the global economy is a dangerous place, full of threats to prosperity. That’s given rise to the idea that there’s a tussle for competitive advantage going on, with each country brandishing its currency as a weapon. The standard view assumes policy makers are driving down exchange rates — or fixing them too low — so that goods made by their exporters can be sold cheaper overseas, providing a jump-start to the economy at home. When other nations retaliate, it ignites a currency war. Central bankers say they’re not trying to pick fights. Rather, they’re keeping a hold on interest rates or taking other steps to stimulate economic growth. That creates spillover, however, as money flees for countries with higher rates, pushing currencies upward and hurting exporters. Whether intentional or not, these unspoken currency wars still create peril — and real winners and losers."
Repeated:
"The standard view assumes policy makers are driving down exchange rates — or fixing them too low — so that goods made by their exporters can be sold cheaper overseas, providing a jump-start to the economy at home."
