The global economy: Phoney currency wars

Posted: February 14, 2013 in economy
Tags: , ,

UK Only Article: 
standard article

Issue: 

The missing $20 trillion

Fly Title: 

The global economy

Rubric: 

The world should welcome the monetary assertiveness of Japan and America

Main image: 

20130216_LDD001_0.jpg

OFFICIALS from the world’s biggest economies meet on February 15th-16th in Moscow on a mission to avert war. Not one with bombs and bullets, but a “currency war”. Finance ministers and central bankers worry that their peers in the G20 will devalue their currencies to boost exports and grow their economies at their neighbours’ expense.
Emerging economies, led by Brazil, first accused America of instigating a currency war in 2010 when the Federal Reserve bought heaps of bonds with newly created money. That “quantitative easing” (QE) made investors flood into emerging markets in search of better returns, lifting their exchange rates. Now those charges are being levelled at Japan. Shinzo Abe, the new prime minister, has promised bold stimulus to restart growth and vanquish …

via Economic Crisis http://www.economist.com/news/leaders/21571888-world-should-welcome-monetary-assertiveness-japan-and-america-phoney-currency-wars?fsrc=rss

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