Thursday, January 24, 2013

Currency Wars: 
Causes and Consequences
Foreign Exchange currency guru Marc Chandler looks at the history of international relations over currencies, then applies that knowledge & understanding to today's environment .. emphasizes currency competition has been the norm even in the past, not just today .. even when the world had the Bretton Woods dollar-gold standard system, the currency market was politicized: "The U.S. wanted the German mark and Japanese yen, for example, to be adjusted higher, rather than devalue the dollar. The attempt to re-start Bretton Woods with the Smithsonian Agreement was shaped by the conflict of national interest." .. thinks there is an escalation ladder for currency wars, that an all-out currency war level on that ladder has not yet been reached but remains a possibility - right now the level is at where governments & central banks want their currencies to be supportive of their monetary policy.
LINK HERE to the essay

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