Businessweek: World ‘Plunges Into Currency War’

Saturday, January 26, 2013
By Paul Martin

By Dan Weil
Friday, 25 Jan 2013

Many government officials around the world are concerned that massive monetary easing in numerous nations is sparking a global currency war.

Governments from Germany, to Russia, to Brazil, to Thailand have expressed worry that the world is plunging into a currency war, Bloomberg Businessweek reports.

The current focus is on Japan, where the central bank this week announced it would increase its quantitative easing and also set a target of 2 percent for inflation.

Before the Bank of Japan even revealed its policy, Bundesbank President Jens Weidmann warned Japan against politicization of monetary policy that would lead to a weaker yen.

“A consequence [of government pressure to ease], whether intended or not, could lead to an increasingly politicized exchange rate. Until now, the international monetary system has come through the crisis without a race to devaluation, and I really hope that it stays that way.”

The Rest…HERE

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