Are currency wars good for the economy?
Conventional wisdom says that war is bad. Does the same apply to currency wars? According to The Atlantic, currency wars are not the cause of global recessions, but an impetus for recovery.
“The downside of devaluation is that no country gains a real trade advantage, and weaker currencies means the prices of commodities like oil shoot. But — and here’s the really important part — devaluing means printing money. There isn’t enough money in the world. That’s the simple and true reason why the global economy fell into crisis and has been so slow to recover. …. A currency war is good because it leads to more money. If war is politics by other means, a currency war is stimulus by other means,” contends the magazine.