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The Christensen Media Blitz on the euro, ‘Open Borders’, China and ‘currency war’

I have been in a bit of media blitz recently. Here is some of it: I have been on Russia Today’s Boom-Bust show to talk to Ameera David about the euro and why I think the euro is a Monetary Strangulation Mechanism. Watch here (after 3:35). And while we are talking about the euro here is an […]

Soon everybody will be scared about ‘currency war’ again – we should be celebrating

With the dollar continuing to strengthen and now the Japanese yen starting to take off as well central bankers in the US and Japan are likely increasingly becoming worried about the deflationary tendencies of stronger currencies and recent comments from both countries’ central banks indicate that they will not allow their currencies to strengthen dramatically […]

Bernanke knows why ‘currency war’ is good news – US lawmakers don’t

I stole this from Scott Sumner: Sen. Tom Coburn (R., Okla.) asks whether all the major central banks easing might diminish the benefits and lead to trade protectionism. “We don’t view monetary policy aimed at domestic goals a currency war,” [Bernanke] says. Easing policy can be “mutually beneficial” to other countries such as China, which […]

‘The Myth of Currency War’

I know that most of my readers must be sick and tired of reading about my view on ‘currency war’. Unfortunately I have more for you. My colleague Jens Pedersen and I have written an article for the Danish business daily Børsen. The piece was published in today’s edition of Børsen. It is in Danish, […]

Don’t tell me the ‘currency war’ is bad for European exports – the one graph version

It is said that Europe is the biggest “victim” in what is said to be an international ‘currency war’ (it is really no war at all, but global monetary easing) as the euro has strengthened significantly on the back of the Federal Reserve and Bank of Japan having stepped up monetary easing. However, the euro […]

The New York Times joins the ‘currency war worriers’ – that is a mistake

It is very frustrating to follow the ongoing discussion of ‘currency war’. Unfortunately the prevailing view is that the world is heading for a ‘currency war’ in the form of ‘competitive devaluations’ that will only lead to misery for everybody. I have again, again and again stressed that when large parts of the world is caught […]

I am sick and tired of hearing about “currency war” – and so is Philipp Hildebrand

Milton Friedman used to talk about an interest rate fallacy – that people confuse low interest rates with easy monetary policy. However, I believe that we today are facing an even bigger fallacy – the exchange rate fallacy. The problem is that many commentators, journalists, economists and policy makers think that exchange rate movements in […]

The exchange rate fallacy: Currency war or a race to save the global economy?

This is from CNB.com: Faced with a stubbornly slow and uneven global economic recovery, more countries are likely to resort to cutting the value of their currencies in order to gain a competitive edge. Japan has set the stage for a potential global currency war, announcing plans to create money and buy bonds as the […]

Bring on the “Currency war”

I have been giving the issue of devaluation a bit of attention recently. In my view most people fail to understand the monetary aspects of currency moves – both within a floating exchange rate regime and with managed or pegged exchange regimes. I have already in my post “Exchange rates and monetary policy – it’s […]

When will Trump accuse Denmark of being a ‘currency manipulator’?

This is from the Financial Times today: “Germany is using a “grossly undervalued” euro to exploit the US and its EU partners, Donald Trump’s top trade adviser has said in comments that are likely to trigger alarm in Europe’s largest economy.   Peter Navarro, the head of Mr Trump’s new National Trade Council, told the Financial […]