Tuesday, May 03, 2016

The Case Against Devaluation And Why It Slows GDP

All the supposed benefits of a cheaper dollar? They aren't actually true

In 2010, Brazil's Finance Minister, Guido Mantega, coined the phrase "currency war" when he complained about the "cheap" Chinese yuan. Mantega claimed this gave China an unfair trade advantage. As he put it to the Financial Times, "we're in the midst of an international currency war, a general weakening of currency. This threatens us because it…