currency wars
Nations cheapening their money
Currency wars occur when countries compete to devalue their own money, making exports cheaper and imports more expensive.
A nation might lower interest rates or print money to weaken its currency, prompting trading partners to retaliate with similar measures.
The term gained prominence after the 2008 financial crisis: Critics accused China of waging a currency war against the dollar.
- race to the bottomCompetition through degraded standards
- exportsGoods sold abroad
- central bankNational currency management institution
- devaluationsReductions in monetary worth
- economiesSystems of production and trade
manipulation · inflation · intervention · geopolitics · sanctions · tariffs · trade · escalation · recession · capital flight · quantitative easing · balance of payments · trade deficit · depreciation · speculation · diplomacy · emerging markets · renminbi
- geoeconomicseconomic coercion, economic leverage, sanctions, trade barriers, protectionism
- monetary policyinflation, central banking, deflation, central bank, money supply
currency warsBretton Woods system
Postwar fixed exchange rate framework
currency warsfree trade
Unrestricted international exchange
military conflict · hot war · armed conflict · shooting war · trade wars
currency warsgold standard
Measure of ultimate quality
monetary union · dollarization · eurozone · sound money · single currency
currency, currencies, current, currently, currents, concurrent, concurrently, concurrence, recurrent