Assistant Professor BET's Global School, Belagavi
Online published on 8 August, 2018.
On Jan. 27, 2010, President Obama fired the first volley of Currency War III in his State of the Union speech. He announced the National Export Initiative. Its aim — to double U.S. exports in five years.
Currency wars are one of the most destructive and have feared outcomes in international economics. At best, they offer the sorry spectacle of countries ’stealing growth from their trading partners. At worst, they degenerate into sequential bouts of inflating assets prices, recession, retaliation, and sometimes actual violence. Currency wars revolve around the themes of inflation, deflation, and debt in the international monetary system. These themes are the intentional policy of a country devaluing its currency against that of other countries to import inflation, expand exports, and increase nominal economic growth. If left unchecked, these currency wars could lead to a crisis worse than the panic of 2008.
