Currency War: Ugly Child of Global Financial Crisis
2 Pages Posted: 17 Mar 2013
Date Written: March 15, 2013
World`s largest industrial and emerging economies, G-20 met in Moscow on 15-16th of February for discussing the currency war concerns. Currency war as a term was coined by the Brazil Finance Minister in 2010. The idea is mainly about devaluations of national currencies for the purpose of gaining more competitive and relatively cheaper exports. Primary policy tool for this purpose is monetary expansion. United States have broad domestic consumption market and when FED applies expansionary monetary policy, the institution presumes that, this step will stimulate domestic demand. It will trigger growth in the US economy. US monetary authority says that, let us strengthen US economy, then world economy also will be in strong situation.
Keywords: Currency wars, G-20, Brasil, Monetary expansion, Japan Economy
JEL Classification: E51, E58, O24, Q11
Suggested Citation: Suggested Citation