Currency wars, who are they good for? | Financial Times

by Faiz Ahmed last modified 2019-08-06T11:15:39-04:00
"China’s economy, however, has more serious problems than US dollar borrowing by local firms. While some sectors such as construction are heavily exposed, the overall amounts are in the single digits when compared with the (sizeable) total debt burdens of the its corporates. The fact that [China's devaluing its currecny] hurts both Chinese and US firms does, however, point to a bigger point: the grim fate of global manufacturing. Indeed, it increasingly seems that monetary policy is a poor fix for a retrenchment of world trade that at its root is political." All the global central banks are now singing to the same tune. Yet when they all loosen their monetary policy in tandem, the local currency benefit is shortlived.
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