{"id":16151,"date":"2016-01-07T12:10:09","date_gmt":"2016-01-07T17:10:09","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16151"},"modified":"2016-01-07T12:10:09","modified_gmt":"2016-01-07T17:10:09","slug":"nations-scramble-to-compete-in-currency-war-as-chinas-yuan-falls-to-five-year-low","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16151","title":{"rendered":"Nations Scramble to Compete in \u2018Currency War\u2019 as China\u2019s Yuan Falls to Five-Year Low"},"content":{"rendered":"

Nations Scramble to Compete in \u2018Currency War\u2019 as China\u2019s Yuan Falls to Five-Year Low\u00a0<\/a><\/h3>\n
\"\"
\nAllan Ajifo<\/a>\u00a0\/\u00a0(CC BY 2.0)<\/a><\/h6>\n
\n

China, Europe and Japan are driving down the value of their currencies in order to make their exports more attractive on the global market, leaving millions of workers in associated industries \u201cprotected or vulnerable, depending on which side they find themselves,\u201d writes\u00a0Guardian<\/b>\u00a0economics correspondent Phillip Inman.<\/p>\n

Governments devalue their currencies to make their goods cheaper and thus increase the volume of their exports. It\u2019s an attempt to shift what economists call the \u201cbalance of trade\u201d in a country\u2019s favor, with the intended net effect of increasing a home economy\u2019s size and overall wealth.<\/p>\n

Inman continues:<\/p>\n

The phrase \u201ccurrency war\u201d speaks to a seemingly phoney battle between the world\u2019s major trading powers over the price of exports. It has all the attributes of an illusory conflict because no one ever agrees that a genuine dispute has taken place. And as long as everyone denies they have drawn swords to slash their currency to compete with rival powers, talk of a war fizzles and dies.<\/p>\n

There is a fringe constituency of analysts who have long argued that, much like the hundred years\u2019 war of intermittent battles between England and France, currency wars make headlines only when there is a lurch in policy, which is the equivalent of deploying archers and unleashing the cavalry.<\/p>\n

China\u2019s decision to set its benchmark for the yuan at a five-year low is such a moment. It makes clear what has been true since last August, namely that the Communist leadership believes it needs a low-valued currency to help bail out its ailing export industries. The problem is that everyone wants to use the same trick.<\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Nations Scramble to Compete in \u2018Currency War\u2019 as China\u2019s Yuan Falls to Five-Year Low\u00a0 Allan Ajifo\u00a0\/\u00a0(CC BY 2.0) China, Europe and Japan are driving down the value of their currencies in order to make their exports more attractive on the global market, leaving millions of workers in associated industries \u201cprotected or vulnerable, depending on which […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[130,1099,279,281,284,3771,452,8738,1031],"class_list":["post-16151","post","type-post","status-publish","format-standard","hentry","category-economics","tag-china","tag-currency-devaluation","tag-eu","tag-europe","tag-european-union","tag-guardian","tag-japan","tag-truthdig","tag-yuan"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16151","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16151"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16151\/revisions"}],"predecessor-version":[{"id":16152,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16151\/revisions\/16152"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16151"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16151"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16151"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}