Currency Wars Yesterday and Today

An energetic debate on the danger of a global currency war has flared up in recent months, stoked by a renewed move to 'quantitative easing' in the United States, resurgent capital flows to developing countries and strong upward pressure on emerging market currencies. This economic premise views some of the arguments and concludes that the current United States monetary easing is a useful insurance policy against the risk of global deflation. But it is increasing pressure on developing countries to move toward greater monetary policy autonomy and exchange rate flexibility, as well as to undertake the institutional and structural policies needed to underpin such flexibility. Such reforms will take time.

Bibliographic Details

Main Authors:	Brahmbhatt, Milan, Canuto, Otaviano, Ghosh, Swati
Language:	English
Published:	World Bank, Washington, DC 2010-12
Subjects:	ADMINISTRATIVE CONTROLS, ADVANCED COUNTRY, AGGREGATE DEMAND, ASYMMETRIC INFORMATION, AUTONOMOUS MONETARY POLICY, BALANCE OF PAYMENTS, BANKING SECTOR, BANKRUPTCIES, BOND, BOND SPREADS, BOND YIELDS, CAPITAL ALLOCATION, CAPITAL CONTROL, CAPITAL CONTROLS, CAPITAL FLOWS, CAPITAL INFLOWS, CAPITAL MARKETS, CENTRAL BANK, CENTRAL BANKS, COLLATERAL, COMPETITIVE DEVALUATION, COMPETITIVE DEVALUATIONS, COMPETITIVENESS, CONSUMER PRICE INFLATION, CORE INFLATION, CORPORATE PROFITS, CREDIBILITY, CREDIT RATIONING, CREDIT SPREADS, CREDITORS, CURRENCY, CURRENT ACCOUNT, CURRENT ACCOUNT DEFICIT, DEBT, DEBTS, DEFLATION, DEPRESSION, DEVELOPING COUNTRIES, DEVELOPING ECONOMIES, DEVELOPMENT STRATEGY, DISINFLATION, DOMESTIC BONDS, DOMESTIC DEMAND, DOMESTIC INTEREST RATES, ECONOMIC CRISIS, ECONOMIC HISTORY, ECONOMIC OUTLOOK, ECONOMIC REVIEW, EMERGING MARKET, EMERGING-MARKET, EXCHANGE RATE, EXCHANGE RATE FLEXIBILITY, EXPORTS, EXTERNAL BORROWING, FEDERAL RESERVE, FEDERAL RESERVE BANK, FINANCIAL DISTRESS, FINANCIAL FRAGILITY, FINANCIAL INSTITUTIONS, FINANCIAL MARKETS, FINANCIAL SECTOR, FINANCIAL STABILITY, FISCAL POLICY, FIXED EXCHANGE RATE, FIXED EXCHANGE RATE PEG, FIXED EXCHANGE RATE REGIME, FLEXIBLE EXCHANGE RATE, FLEXIBLE EXCHANGE RATES, FOREIGN EXCHANGE, FOREIGN EXCHANGE MARKET, FULL EMPLOYMENT, GDP, GLOBAL CURRENCY, GLOBAL DEMAND, GLOBAL ECONOMY, GLOBAL FINANCIAL STABILITY, GLOBAL IMBALANCES, GLOBAL TRADE, GLOBALIZATION, GOLD, GOLD STANDARD, GOVERNMENT BONDS, GOVERNMENT SECURITIES, GROSS DOMESTIC PRODUCT, GROWTH POLICY, GROWTH POTENTIAL, GROWTH VOLATILITY, HIGH INFLATION, IMBALANCES, IMPLICIT SUBSIDY, IMPORT, INDEPENDENT MONETARY POLICIES, INDEPENDENT MONETARY POLICY, INFLATION EXPECTATIONS, INFLATION RATE, INFLATIONARY EXPECTATIONS, INFLATIONARY PRESSURES, INSTRUMENT, INSURANCE, INSURANCE POLICY, INTEREST RATE, INTEREST RATE SPREADS, INTERNATIONAL FINANCIAL INTEGRATION, INTERNATIONAL MARKETS, LIBERALIZATION, LIBERALIZATIONS, LIMITED EXCHANGE RATE FLEXIBILITY, LIQUIDITY, LOCAL MARKETS, LONG-TERM GOVERNMENT SECURITIES, LONG-TERM INTEREST, LONG-TERM INTEREST RATES, LOSS OF COMPETITIVENESS, MACRO POLICY, MACROECONOMIC POLICIES, MACROECONOMIC POLICY, MARKET COUNTRIES, MATURITIES, MATURITY, MATURITY STRUCTURE, MONETARY AUTONOMY, MONETARY ECONOMICS, MONETARY FUND, MONETARY POLICY, MONETARY POLICY AUTONOMY, MONEY GROWTH, MONEY SUPPLY, MULTILATERAL TRADE, NOMINAL INTEREST RATE, NOMINAL INTEREST RATES, OPEN CAPITAL ACCOUNT, OPEN CAPITAL ACCOUNTS, OUTPUT, OUTPUT GAPS, POLICY OPTIONS, POLICY REFORM, POLICY RESPONSE, POLITICAL ECONOMY, POTENTIAL OUTPUT, POVERTY REDUCTION, PRICE STABILITY, PROTECTIONISM, REAL EXCHANGE, REAL EXCHANGE RATE, REAL EXCHANGE RATES, REAL GROSS DOMESTIC PRODUCT, REAL INTEREST, REAL INTEREST RATES, RECESSION, REGULATORY REFORM, RESERVE REQUIREMENTS, RETURN, SAFETY NETS, SHORT-TERM INTEREST RATE, SHORTFALL, SPECULATIVE BUBBLES, STRUCTURAL POLICIES, TAX, TRADABLE GOODS, TRADE DEFICIT, TRADE POLICY, TRADING, TRADING PARTNERS, TREASURY, TREASURY BONDS, UNEMPLOYMENT, UPWARD PRESSURE, VOLATILITY, VOLUME OF FLOWS, WAGES, WORLD TRADE,
Online Access:	http://documents.worldbank.org/curated/en/2010/12/13216674/currency-wars-yesterday-today https://hdl.handle.net/10986/10116
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