Monday, June 6, 2016

WSJ: Why Currency Wars Are So Destructive

By SIMON CONSTABLE

When economies start to flag, governments will occasionally start what is known as a currency war. It is important that investors understand what the term means and why it can be so destructive to the countries involved.

Such conflicts start when one country decides to lower the value of its currency to increase its exports. Exports become cheaper for foreign buyers whose currency doesn’t deflate. Read more here.

PaasikiviCC BY-SA 4.0, via Wikimedia Commons



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