Currency Wars Yesterday and Today

Milan Brahmbhatt (), Otaviano Canuto and Swati Ghosh ()
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Milan Brahmbhatt: World Bank
Swati Ghosh: World Bank

World Bank - Economic Premise, 2010, issue 43, 1-6

Abstract: 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 reviews some of the arguments and concludes that the current U.S. 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.

Keywords: currency; exchange rates; quantitative easing; capital flows; monetary easing; monetary policy; deflation; developing countries; exchange rate flexibility; structural policies (search for similar items in EconPapers)
JEL-codes: E4 E5 E51 E52 E58 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Working Paper: Currency Wars Yesterday and Today (2010)
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