Beggaring the World Economy
As low interest rates in industrial countries send capital around the world searching for higher yields, developing and developed countries alike are intervening heavily to keep their currencies from appreciating. But, rather than competing for a slice of shrinking global demand, countries should focus on re-balancing their economies.
https://prosyn.org/O3E9NOd
CHICAGO – Global capital is on the move. As ultra-low interest rates in industrial countries send capital around the world searching for higher yields, a number of emerging-market central banks are intervening heavily, buying the foreign-capital inflows and re-exporting them in order to keep their currencies from appreciating. Others have been imposing capital controls of one stripe or another. In recent weeks, Japan became the first large industrial economy to intervene directly in currency markets.