An Era of Currency Wars?
Bundesbank President Jens Weidmann recently warned that the erosion of central-bank independence would trigger competitive exchange-rate devaluations. In fact, central banks' increased vulnerability to political pressure does not portend a "currency war, but rather reflects the severe constraints on monetary and fiscal policy.
https://prosyn.org/9O1K3Jd
LONDON – Once again, the risk of “currency wars” has been invoked by a leading policymaker. The term was coined in 2010 by Brazil’s finance minister, Guido Mantega, to criticize successive rounds of so-called quantitative easing by advanced countries’ central banks, which sent capital fleeing to developing countries in search of higher yields, driving up these countries’ exchange rates in the process.