Currency Wars

As James Rickards argues in Currency Wars, this is more than just a concern for economists and investors.

Author: James Rickards

Publisher: Penguin

ISBN: 110155889X

Category: Business & Economics

Page: 320

View: 785

In 1971, President Nixon imposed national price controls and took the United States off the gold standard, an extreme measure intended to end an ongoing currency war that had destroyed faith in the U.S. dollar. Today we are engaged in a new currency war, and this time the consequences will be far worse than those that confronted Nixon. Currency wars are one of the most destructive and feared outcomes in international economics. At best, they offer the sorry spectacle of countries' stealing growth from their trading partners. At worst, they degenerate into sequential bouts of inflation, recession, retaliation, and sometimes actual violence. Left unchecked, the next currency war could lead to a crisis worse than the panic of 2008. Currency wars have happened before-twice in the last century alone-and they always end badly. Time and again, paper currencies have collapsed, assets have been frozen, gold has been confiscated, and capital controls have been imposed. And the next crash is overdue. Recent headlines about the debasement of the dollar, bailouts in Greece and Ireland, and Chinese currency manipulation are all indicators of the growing conflict. As James Rickards argues in Currency Wars, this is more than just a concern for economists and investors. The United States is facing serious threats to its national security, from clandestine gold purchases by China to the hidden agendas of sovereign wealth funds. Greater than any single threat is the very real danger of the collapse of the dollar itself. Baffling to many observers is the rank failure of economists to foresee or prevent the economic catastrophes of recent years. Not only have their theories failed to prevent calamity, they are making the currency wars worse. The U. S. Federal Reserve has engaged in the greatest gamble in the history of finance, a sustained effort to stimulate the economy by printing money on a trillion-dollar scale. Its solutions present hidden new dangers while resolving none of the current dilemmas. While the outcome of the new currency war is not yet certain, some version of the worst-case scenario is almost inevitable if U.S. and world economic leaders fail to learn from the mistakes of their predecessors. Rickards untangles the web of failed paradigms, wishful thinking, and arrogance driving current public policy and points the way toward a more informed and effective course of action. From the Hardcover edition.

Currency Wars

1 ir OV example of the currency assaults that have characterized and at times
dictated the political climate of the twentieth century . Efforts in war or peacetime
to undermine the economies , societies and governments of adversaries by ...

Author: John K. Cooley

Publisher: Skyhorse Publishing Company Incorporated

ISBN:

Category: Business & Economics

Page: 350

View: 484

Argues that counterfeit money is being used as a weapon of mass destruction as well as a medium for organized crime, explaining how foreign states use forgery to destabilize enemy governments and wage economic warfare, in an account that also describes the practices of counterfeiting in earlier historical periods.

Currency Wars

Currency. Wars. with. a. Single. World. Currency? Contents 24.1 A Systemic
Evolutionary Model of World Currencies . ... question of whether or not
introducing and adopting a single world currency can help to avoid and end all
currency wars.

Author: Jeffrey Yi-Lin Forrest

Publisher: Springer

ISBN: 3319677659

Category: Business & Economics

Page: 607

View: 830

This book uses systemic thinking and applies it to the study of financial crises. It systematically presents how the systemic yoyo model, its thinking logic, and its methodology can be employed as a common playground and intuition to the study of money, international finance, and economic reforms. This book establishes theoretical backings for why some of the most employed interferences of the market and empirical experiences actually work. It has become urgent for economists and policy makers to understand how international speculative capital affects the economic security of various nations. By looking at the issues of monetary movement around the world, this book shows that there are clearly visible patterns behind the flows of capital, and that there are a uniform language and logic of reasoning that can be powerfully employed in the studies of international finance As shown in this book, many of the conclusions drawn on the basis of these visible patterns, language, and logic of thinking can be practically applied to produce tangible economic benefits. Currency Wars: Offense and Defense through Systemic Thinking is divided into six parts. The first part addresses issues related to systemic modeling of economic entities and processes and explains how a few policy changes can adjust the performance of the extremely complex economy. Part II of the book investigates the problem of how instabilities lead to opportunities for currency attacks, the positive and negative effects of foreign capital, and how international capital flows can cause disturbances of various degrees on a nation’s economic security. Part III examines how a currency war is initiated, why currency conflicts and wars are inevitable, and a specific way of how currency attacks can take place. In Part IV, the book shows how one nation can potential defend itself by manipulating exchange rate of its currency, how the nation under siege can protect itself against financial attacks by using strategies based on the technique of feedback, and develops a more general approach of self-defense. Part V focuses on issues related to the cleanup of the disastrous aftermath of currency attacks through using policies and reforms. Finally the book concludes in Part VI as it analyzes specific real-life cases and addresses the ultimate problem of whether or not currency wars can be avoided all together.

Currency Wars or Efficient Spillovers A General Theory of International Policy Cooperation

... A., and Young, E. R. (2017). Optimal capital controls or exchange rate policies?
a pecuniary externality perspective. Journal of Monetary Economics, forthcoming.
... Currency wars, coordination, and capital controls. NBER Working Paper ...

Author: Mr.Anton Korinek

Publisher: International Monetary Fund

ISBN: 1475577540

Category: Business & Economics

Page: 66

View: 284

In an interconnected world, national economic policies regularly lead to large international spillover effects, which frequently trigger calls for international policy cooperation. However, the premise of successful cooperation is that there is a Pareto inefficiency, i.e. if there is scope to make some nations better off without hurting others. This paper presents a first welfare theorem for open economies that defines an efficient benchmark and spells out the conditions that need to be violated to generate inefficiency and scope for cooperation. These are: (i) policymakers act competitively in the international market, (ii) policymakers have sufficient external policy instruments and (iii) international markets are free of imperfections. Our theorem holds even if each economy suffers from a wide range of domestic market imperfections and targeting problems. We provide examples of current account intervention, monetary policy, fiscal policy, macroprudential policy/capital controls, and exchange rate management and show that the resulting spillovers are Pareto efficient, as long as the three conditions are satisfied. Furthermore, we develop general guidelines for how policy cooperation can improve welfare when the conditions are violated.

The Threat of currency Wars

The "currency war", as it has become known, has three aspects: 1) the inflexible pegs of undervalued currencies; 2) recent attempts by floating exchange-rate countries to resist currency appreciation; 3) quantitative easing.

Author: Zsolt M. Darvas

Publisher:

ISBN: 9786155024320

Category:

Page:

View: 222

The "currency war", as it has become known, has three aspects: 1) the inflexible pegs of undervalued currencies; 2) recent attempts by floating exchange-rate countries to resist currency appreciation; 3) quantitative easing. Europe should primarily be concerned about the first issue, which relates to the renewed debate about the international monetary system. The attempts of floating exchange-rate countries to resist currency appreciation are generally justified while China retains a peg. Quantitative easing cannot be deemed a "beggar-thy-neighbour" policy as long as the Fed's policy is geared towards price stability. Current US inflationary expectations are at historically low levels. Central banks should come to an agreement about the definition of price stability at a time of deflationary pressures. The euro's exchange rate has not been greatly impacted by the recent currency war; the euro continues to be overvalued, but less than before. -- currency war ; quantitative easing ; currency intervention ; international monetary system

Naval War College Review

DEREKREVERN Naval War College Rickards , James . Currency Wars : The
Making of the Next Global Crisis . New York : Penguin Group , 2011. 304pp . $
26.95 military leaders . Such conflicts can and should be prepared for , because
the ...

Author:

Publisher:

ISBN:

Category: International relations

Page:

View: 197


Trade Wars Currency Wars

Abstract: For most of the post WWII period, until recently, trade protectionism followed a downward trend, and was formulated in multilateral or bilateral agreements between countries.

Author: Stéphane Auray

Publisher:

ISBN:

Category:

Page:

View: 732

For most of the post WWII period, until recently, trade protectionism followed a downward trend, and was formulated in multilateral or bilateral agreements between countries. Recently however, there hasbeen a sharp shift towards unilateral, discretionary trade policy focused on short term macroeconomic objectives, and as a consequence, the use of trade policy has become entangled with that of monetary policy. This paper explores the consequences of this shift within a standard DSGE open economy macroeconomic model. We find that a discretionary non-cooperative approach to trade policy can significantly worsen macroeconomic conditions. Moreover, the stance of monetary policy has major implications for the degree of protection in a non-cooperative equilibrium. In particular, cooperative determination of monetary policy implies an increase in both equilibrium tariffs and inflation, and a significant fall in welfare. By contrast, when the exchange rate is pegged by one country, equilibrium rates of protection are generally lower, but in this case, there are multiple asymmetric equilibria in tariff rates which benefit one country relative to another. We also explore the determination of non-cooperative tariffs in a situation where monetary policy is constrained by the zero lower bound on nominal interest rates.

Digital Currency Wars

In the not-so-distant future, China becomes the first major economy to issue a central bank digital currency (CBDC). The development goes largely unnoticed at first, since payments in China are already highly digitized.

Author:

Publisher:

ISBN:

Category: Cryptocurrencies

Page: 15

View: 713

In the not-so-distant future, China becomes the first major economy to issue a central bank digital currency (CBDC). The development goes largely unnoticed at first, since payments in China are already highly digitized. Then, North Korea tests a nuclear missile that demonstrates significant advancements in its nuclear program. Analysts believe it could land a nuclear weapon in the continental United States within a year. These capabilities, it turns out, are funded using the Chinese digital currency, which U.S. authorities cannot track. Soon thereafter, countries that want to escape U.S. oversight and sanctions, like Russia and Iran, begin issuing their own digital currencies. Strategically, how can the U.S. continue to leverage economic power in the world of national digital currencies?

The System Worked

Despite the failure of a currency war to actually emerge, the meme never died out
. A Google Trends analysis shows that “currency wars” repeatedly triggered
elevated search levels despite continued declines in currency volatility.17 The
meme ...

Author: Daniel W. Drezner

Publisher: Oxford University Press

ISBN: 0199912122

Category: Political Science

Page: 280

View: 753

International institutions, from the International Monetary Fund to the International Olympic Committee, are perceived as bastions of sclerotic mediocrity at best and outright corruption at worst, and this perception is generally not far off the mark. In the wake of the 2008 financial crash, Daniel W. Drezner, like so many others, looked at the smoking ruins of the global economy and wondered why global economic governance structure had failed so spectacularly, and what could be done to reform them in the future. But then a funny thing happened. As he surveyed their actions in the wake of the crash, he realized that the evidence pointed to the exact opposite conclusion: global economic governance had succeeded. In The System Worked, Drezner, a renowned political scientist and international relations expert, contends that despite the massive scale and reverberations of this latest crisis (larger, arguably, than those that precipitated the Great Depression), the global economy has bounced back remarkably well. Examining the major resuscitation efforts by the G-20 IMF, WTO, and other institutions, he shows that, thanks to the efforts of central bankers and other policymakers, the international response was sufficiently coordinated to prevent the crisis from becoming a full-fledged depression. Yet the narrative about the failure of multilateral economic institutions persists, both because the Great Recession affected powerful nations whose governments managed their own economies poorly, and because the most influential policy analysts who write the books and articles on the crisis hail from those nations. Nevertheless, Drezner argues, while it's true that the global economy is still fragile, these institutions survived the "stress test" of the financial crisis, and may have even become more resilient and valuable in the process. Bucking the conventional wisdom about the new "G-Zero World," Drezner rehabilitates the image of the much-maligned international institutions and demolishes some of the most dangerous myths about the financial crisis. The System Worked is a vital contribution to our understanding of an area where the stakes could not be higher.

Capital Wars

... 63–7, 139–40, 193–5 Corporate Social Responsibility ('CSR') 220,231
Corporate Venture Scheme 230 Currency Exchange Rate Oversight Reform Act
151 currency reserves 15 currency wars 151–4 Cushing, Robert 38 customs duty
181–2 ...

Author: Daniel Pinto

Publisher: A&C Black

ISBN: 1472905067

Category: Business & Economics

Page: 256

View: 265

Just a few years is all it took for the debt crisis to bring down the mighty 'twin towers' of American and European capitalism and undo two centuries of Western dominance on the world's economic and political stage. Daniel Pinto offers a unique insight into how the East is winning the battle for economic supremacy, thereby shaping the new world order and leaving America and Europe with no choice but to reinvent themselves. Drawing on his own experience at the highest levels of business and finance, Pinto dismisses the common notion that globalisation is to blame for anaemic growth, massive unemployment and over-indebtedness. Instead, he argues that by killing our own entrepreneurial spirit, we have set the stage for the demise of the West and the rise of emerging powers. Capital Wars is a road map designed to re-energise large corporations, better control financial markets and reposition the entrepreneur at the centre of the Western capitalist model in order to regain economic dominance.

The Tierra Solution

For him, the dollar represents the pivotal currency in the last hundred years, and
the wars around the dollar become currency wars. The outcome of the most
recent currency war will determine the fate of the monetary system as a whole.

Author: Frans C. Verhagen

Publisher: Cosimo, Inc.

ISBN: 1616406887

Category: Business & Economics

Page: 374

View: 587

"A visionary and immensely practical approach to reforming today's bubble finance and taming its global casino. Verhagen [...] illuminates the win-win solutions possible when we combine monetary transformation with low-carbon, renewable resource strategies and equitable approaches to sustainable development." -Hazel Henderson, President of Ethical Markets Media, author and creator of The Green Transition Scoreboard As climate change continues to threaten the earth and as the global financial crisis lingers, governments and communities need to take charge of their own and global monetary systems. Sustainability sociologist Frans Verhagen proposes a solution-the Tierra Solution-to repair the present global monetary, financial, and economic systems that enrich the few, impoverish the many, and imperil the planet. Verhagen calls for transformational changes in order to advance climate-resilient economic development. The Tierra Solution proposes: -A credit-based financial system governed by a Global Central Bank, -A banking system without the privilege of money creation, and most importantly, -A carbon standard for the international monetary system with the Tierra as the unit of account. The Tierra Solution is an in-depth and thought-provoking read that shows an innovative path for global citizens who want to combat climate change, the economic crisis and poverty, and for public officials, economists, international development experts, and climate scientists who want to be part of an integrated solution to the dual challenges of climate change and financial crises. "Whether you agree or disagree, The Tierra Solution challenges us with an innovative proposal. No tinkering here. Verhagen is out to lay a new foundation for environmental and climate justice, with an overhaul of the international monetary system that builds the cost of environmental degradation into economic calculations." -Rev. Arthur Simon, President Emeritus and founder of Bread for the World "This plan for a carbon-based international monetary standard that addresses both climate change and global economic inequities is bold, visionary, and truly transformative. It is a must-read for everyone who cares about the fate of the earth." -Sheila D. Collins, Professor of Political Science Emerita, William Paterson University FRANS C. VERHAGEN is a sustainability sociologist with a Ph.D. in the sociology of international development from Columbia University. He founded the Queens Green Party, the Riverside Church Ecology Task Force, and the Ecolinguistics Commission. He has worked around the world and online teaching environmental policies and sustainability.

Time

The Monetary Fund was I wouldn't buy . Regular 20 ¢ size now Instead of being
worth only 91 U.S. cents , supposed to prevent currency wars . But 894. ” it was
now worth a U.S. dollar . But its founders were thinking of depression In this ad in
 ...

Author: Briton Hadden

Publisher:

ISBN:

Category: Current events

Page:

View: 154

Reels for 1973- include Time index, 1973-

The American Year Book

definite period of time after the war but also to purchase large quantities of
machinery and equipment as soon as these ... However, it does prevent currency
wars and beyond an initial depreciation of 10 per cent any changes in the par
value of ...

Author:

Publisher:

ISBN:

Category: Statistics

Page:

View: 499


Oil Gas Journal

The demand for oil and tion to remove its foreign - exchange functions are much
broader tha its products is bound to be substan - restrictions , and if these are
mainthose of ... These public debt of all nations has inand prevent currency wars .

Author:

Publisher:

ISBN:

Category: Petroleum industry and trade

Page:

View: 665


Reserve Bank of India Bulletin

He has taken questions from beyondbrics readers currency wars , rural
development , house prices and the deepening of capital markets . on India's
central banker ( 1 ) : currency wars and hot money Rupee strength beyondbrics
reader : Why ...

Author: Reserve Bank of India

Publisher:

ISBN:

Category: Banks and banking

Page:

View: 447


Bulletin

Since foreign assistance is a prime essential in the stabilization of currencies, an
international organization strong ... The establishment of international machinery
to prevent currency wars and to permit changes in the exchange rates of ...

Author: Institute of International Finance

Publisher:

ISBN:

Category:

Page:

View: 739


The Socialist Register

mainly to discourage speculation , to put a stop if possible to the currency wars
that are bound to break out every so often as ... Insofar as the six jointly floating
and other floating currencies go up in relation to the dollar , this should work in
the ...

Author: John Savile

Publisher:

ISBN:

Category: Communism

Page:

View: 542


A History of Indian Currency

Soon the extreme was reached and chaos in the international trade was created
by the currency wars that ensued out of competitive exchange depreciation . The
civilised world seems to have learned its mistakes and wishes to avoid both the ...

Author: M. V. Bhatwadekar

Publisher:

ISBN:

Category: Currency question

Page: 183

View: 644


International Monetary System the IMF and the G20

Without such generally accepted rules of the game , floating can produce
currency wars as readily as fixing can give rise to trade wars . On the hypothesis
that the US deficit is the counterpart to a rational export - led growth strategy by
East and ...

Author: Marc Uzan

Publisher: Palgrave MacMillan

ISBN:

Category: Business & Economics

Page: 371

View: 607

The establishment in 1944 of the International Monetary Fund and the World Bank remains one of the most important achievements of international economic cooperation. Over the past six decades, the world has witnessed fundamental political and economic changes which have radically altered the environment in which the world's leading international financial institutions have had to operate. The wave of financial crises during the past decade has contributed to an emerging consensus that the international financial system, and the institutions underpinning it, are in need of reform. The International Monetary Convention Project has sought to contribute to the debate on the key elements of such reforms by creating a platform for dialogue and deliberation, involving G-20 policy-makers as well as leading members of the private sector and the academic community. The book offers a representative sampling of some of the thinking surrounding the fundamental questions being explored in this series of roundtables, held in 7 countries over 2 years. What new or improved arrangements are needed to ensure the smooth functioning of the international financial system in the 21st century, given the emergence of a wider range of important national actors and the increased role of private capital flows? It is hoped that the papers in this volume, written by leading participants in this critical international debate, will stimulate further creative thinking in the field of global monetary and economic governance.

European Economic and Monetary Union Vol EEFS 1 The Institutional Framework

Currency wars have usually been an aspect of trade wars , in which restrictions
on trade and capital movements have been imposed through the front door or
back entrance . If German industry fears competitive depreciation , its safest
course ...

Author: Mads Andenas

Publisher: Springer

ISBN:

Category: Business & Economics

Page: 565

View: 551

The pending establishment of the European Economic and Monetary Union (EMU) is a cutting-edge issue on the brink of realisation. The European Central Bank (ECB) president, who will play a pivotal role in the success of EU monetary policy, has already been appointed. Topical coverage includes novel problems posed by the monetary union; a review of mechanisms in the separation between control of monetary and fiscal policy and affecting drafted financial products for use in the unprecedented monetary union; and the eventual role of the ECB in the EMU, especially in banking supervision. Based on a joint research project on the monetary union by the Centre of European Law at King's College and the London Institute of International Banking, Finance and Development Law, this work presents nineteen highly topical chapters. The authors are from varied jurisdictions and professional disciplines. Academics in banking/finance and economic law, government officials, and practitioners will appreciate the high intellectual content yet practical utility of this work on a topic poised to have a significant effect in the very near future.