October 2010. 'Currency wars’ has become a very popular term in the press, and this conjures up the impression that we are seeing policymakers utilising currency weakness as a legitimate weapon to inflate their economies. In reality, currencies are moving in an appropriate way to relative economic information and perceptions of future monetary policy. However, there is no doubt that recent movements have reignited interest in a critically important market. In this note Jonathon Griggs explores these developments and their implications.
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