In February 2013, the G-20 finance ministers in Moscow, Russia met to discuss the growing concerns over a possible war international currency. It has been speculated that certain countries were deliberately devaluing their currencies in order to improve their competitiveness in global markets. Emerging markets, claiming that the expansionary monetary policies of major central banks, including the U.S. Federal Reserve, the European Central Bank and the Bank of England, which were a significant and unexpected problems … Read more »

In February 2013, the G-20 finance ministers in Moscow, Russia met to discuss the growing concerns over a possible war international currency. It has been speculated that certain countries were deliberately devaluing their currencies in order to improve their competitiveness in global markets. Emerging markets, claiming that the expansionary monetary policies of major central banks, including the U.S. Federal Reserve, the European Central Bank and the Bank of England, caused significant adverse spillover effects, such as appreciation of the currency, declining exports and rising inflation in less developed economies. Conversely, were the major central banks, that such a policy, which were also internationally for the revival of economic growth both domestically. If this policy successfully create a resurgence of growth? Can expansionary monetary policy “beggar-thy-neighbor” actions are drawn from the emerging countries in question? As developing nations should respond?
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from
Laura Alfaro,
Hilary White
Source: Harvard Business School
8 pages.
Release Date: 18, March 2013. Prod #: 713074-PDF-ENG
Currency wars HBR case solution

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