Many government officials around the world are concerned that massive
monetary easing in numerous nations is sparking a global currency war.
Governments from Germany, to Russia, to Brazil, to Thailand have
expressed worry that the world is plunging into a currency war,
Bloomberg Businessweek reports.
The current focus is on Japan, where the central bank this week
announced it would increase its quantitative easing and also set a
target of 2 percent for inflation.
Before the Bank of Japan even revealed its policy, Bundesbank President
Jens Weidmann warned Japan against politicization of monetary policy
that would lead to a weaker yen.
"A consequence [of government pressure to ease], whether intended or
not, could lead to an increasingly politicized exchange rate. Until now,
the international monetary system has come through the crisis without a
race to devaluation, and I really hope that it stays that way."
READ MORE:
http://www.moneynews.com/FinanceNews/fears-world-currency-war/2013/01/25/id/472963?s=al&promo_code=122F4-1
No comments:
Post a Comment