- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Can someone explain 'currency war'?
Posted on 2/25/13 at 10:49 am
Posted on 2/25/13 at 10:49 am
Supposedly, it's a looming threat globally. I know what trade wars are but am unfamiliar with currency war.
Posted on 2/25/13 at 11:02 am to Zach
It's a media creation to dramatize something that's been going on for decades with little notice.
It refers to countries trying to stimulate their manufacturing industry and economy by lowering the value of their currency. That makes goods manufactured in their country cheaper in other countries and therefore, more likely for people in other countries to buy their products.
It also makes products made in other countries more expensive within those countries with a devalued currency so citizens tend to buy less foreign made goods and more domestically manufactured goods which again stimulates the manufacturing industry in that country.
Japan is actively pursuing that process now and has been for several months. China is notorious for keeping its currency cheap versus the US dollar.
It refers to countries trying to stimulate their manufacturing industry and economy by lowering the value of their currency. That makes goods manufactured in their country cheaper in other countries and therefore, more likely for people in other countries to buy their products.
It also makes products made in other countries more expensive within those countries with a devalued currency so citizens tend to buy less foreign made goods and more domestically manufactured goods which again stimulates the manufacturing industry in that country.
Japan is actively pursuing that process now and has been for several months. China is notorious for keeping its currency cheap versus the US dollar.
Popular
Back to top
Follow TigerDroppings for LSU Football News