"We're in the midst of an international currency war," Guido Mantega, the Finance Minister of Brazil bluntly told an industrial trade group in September 2010. "This threatens us because it takes away our competitiveness. The advanced countries are seeking to devalue their currencies." His remarks came in response to the Federal Reserve’s policy of
A Fine Line Between Prudent Policy And A Currency War
Low interest rates and deficit spending can goose a slow economy, often trashing the value of the currency and making exports appear cheap. But sometimes this policy looks like a type of war.