Currency wars are one of the most destructive and feared outcomes in international economics. At best, they offer the sorry spectacle of countries’ stealing growth form their trading partners. At worst, they degenerate into sequential bouts of inflation, recession, retaliation, and sometimes actual violence! Left unchecked, the next currency war would lead to a crisis worse than the panic of 2008. Currency wars have happened before; twice in the last century alone, and they always end badly. Time and again, paper currencies have collapsed, assets have been frozen, gold has been confiscated and capital controls have been imposed. And the next crash is overdue. Recent headlines about the debasement of the dollar, bailouts in Greece and Ireland, and Chinese currency manipulation are all indicators of the growing conflict.
"He argues in his new book, Currency Wars: The Making of the Next Global Crisis, QE is an "exercise in deception" that offers little chance of promoting long-term economic recovery. Worse, it has left the dollar highly vulnerable to speculation and, ultimately, a cataclysmic crash." USA Today
"The currency wars are heating up. The US Senate has passed a bill to penalise countries that manipulate their exchange rates–a move aimed squarely at China.."financial times
In the midst of the most serious financial upheaval since the Great Depression, legendary financier George Soros explores the origins of the crisis and its implications for the future. Soros, whose breadth of experience in financial markets is unrivaled, places the current crisis in the context of decades of study of
The global financial crisis has already inspired over a thousand books, not to mention myriad articles, blogs, and other commentary. Some are simply expressions of anger. Others document the hole we find ourselves in or perform forensics on how we nearly buried ourselves alive. Fewer focus on what is to be
The recent economic crisis was a dramatic reminder that capitalism can both produce and destroy. It's a system that by its very nature encourages predators and creators, locusts and bees. But, as Geoff Mulgan argues in this compelling, imaginative, and important book, the economic crisis also presents a historic opportunity to
Sometimes these competitive devaluations are inconclusive, with each side gaining a temporary edge but neither side ceding permanent advantage.