As countries try to weaken their currencies to boost exports, the
risk of a currency war similar to events seen in the 1930s has
heightened, and policymakers are making sure they are on the winning
side, according to Morgan Stanley.
The balance of power now
rests with Japan, according to the bank, as Japan's policy-makers' more
dovish approach looks set to bring the world a step closer to a currency
war.
The Bank of Japan doubled its inflation target to 2
percent in January and made an open-ended commitment to continue buying
assets from next year. This follows a leadership change, with new Prime
Minister Shinzo Abe openly calling for aggressive monetary stimulus from
the country's central bank.
READ MORE: http://www.cnbc.com/id/100441340
No comments:
Post a Comment