Currency Wars Return, 1930's Style: Who Will Lose Out?Submitted by emalvini on Thu, 02/07/2013 - 13:14
Currency Wars Return, 1930's Style: Who Will Lose Out?
Published: Thursday, 7 Feb 2013 | 2:53 AM ET
By: Matt Clinch
News Assistant | CNBC
As countries try to weaken their currencies to boost exports, the risk of a currency war similar to events seen in the 1930s has heightened and policymakers are making sure they are on the winning side, according to Morgan Stanley.
The balance of power now rests with Japan, according to the bank, as Japan's policy-makers' more dovish approach looks set to bring the world a step closer to a currency war.
The Bank of Japan doubled its inflation target to 2 percent in January and made an open-ended commitment to continue buying assets from next year. This follows a leadership change, with new Prime Minister Shinzo Abe openly calling for aggressive monetary stimulus from the country's central bank.
Read more: http://www.cnbc.com/id/100441340