{"product_id":"currency-conflicts-on-the-international-scene","title":"Currency Conflicts On The International Scene","description":"\u003cp\u003eThere has been discussion of ‘currency wars’ for a number of years. The\u003cbr\u003elongest-running recent issue has been the persistent US current account\u003cbr\u003edeficit and the matching surpluses elsewhere in the world, particularly\u003cbr\u003eChina. These ‘global imbalances’ surfaced before 2000, and look set to\u003cbr\u003econtinue for many years more, with little sign of the US deficit or Chinese\u003cbr\u003esurplus closing, despite some movement in the real exchange rate. The issue\u003cbr\u003eis wider than this. In 2011 Japan took steps to limit the rise of the yen.\u003cbr\u003eThere was concerted action by several central banks after the major\u003cbr\u003eearthquake in north-east Japan on 11th March 2011, and late in October 2011\u003cbr\u003eJapan took unilateral action to prevent the Yen from rising further. In\u003cbr\u003eSeptember 2011, the Swiss Central Bank imposed a ceiling on the value of\u003cbr\u003ethe Swiss franc and a number of emerging economies whose exchange rates\u003cbr\u003efloat freely, or relatively freely, and whose capital markets are fairly\u003cbr\u003eopen, have complained that their currencies have become overvalued because\u003cbr\u003einternational capital, looking for returns, has flowed into their\u003cbr\u003eeconomies. Brazil has taken steps to limit the rise of the Real. Other\u003cbr\u003eSouth American countries, including Chile and Peru, have been intervening\u003cbr\u003ein the last year to prevent what they see as excessive appreciation. Global\u003cbr\u003eimbalances and currency wars are the subject of frequent analysis by the\u003cbr\u003eInternational Monetary Fund and they attract a great deal of attention in\u003cbr\u003ethe financial press. Currency conflicts cover two different phenomena: one\u003cbr\u003eis disagreement about the level of a managed or pegged exchange rate, like\u003cbr\u003ethe Chinese Yuan; another is the inappropriate level to which floating\u003cbr\u003eexchange rates are driven by market forces, as in the case of the Brazilian\u003cbr\u003eReal, the Japanese Yen, and the Swiss Franc. A different analysis of how\u003cbr\u003eexchange rates come about is required for each case. It reflects the fact\u003cbr\u003ethat the international monetary system comprises a variety of different\u003cbr\u003eways of determining exchange rates and carrying out monetary policy. Some\u003cbr\u003ecountries float, some peg, and others are in between. The current\u003cbr\u003einternational monetary system is not really a ‘system’ in the sense that\u003cbr\u003ethe Gold Standard or the Bretton Woods regime was a system. Instead, it is\u003cbr\u003ean ad hoc, patchwork affair. This paper reviews the causes and consequences\u003cbr\u003eof these currency conflicts, the way they are likely to develop in the\u003cbr\u003ecoming years, and some possible solutions.\u003c\/p\u003e\u003cbr\u003eAuthor: John Driffill\u003cbr\u003ePublisher: Emirates Center for Strategic Studies and Research\u003cbr\u003ePublication Date: 2012\u003cbr\u003e","brand":"Thryft x Books for Charity","offers":[{"title":"Like New","offer_id":51413000225049,"sku":"X59645","price":11.43,"currency_code":"SGD","in_stock":false},{"title":"Very Good","offer_id":51413000257817,"sku":"X59645","price":9.71,"currency_code":"SGD","in_stock":true},{"title":"Good","offer_id":51413000290585,"sku":"X59645","price":8.74,"currency_code":"SGD","in_stock":false},{"title":"Well Read","offer_id":51413000323353,"sku":"X59645","price":8.26,"currency_code":"SGD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0110\/0598\/4849\/files\/content_36e70b8e-611a-4a0c-9c2d-085ea8dcc864.jpg?v=1758701366","url":"https:\/\/thryft.sbs\/products\/currency-conflicts-on-the-international-scene","provider":"Thryft","version":"1.0","type":"link"}