Japan is winning the currency war, USA second, swiss a distant third, lots of countries participate, only a few knows what winning actually means, avoiding capital flight is much more important than "gaining" export.
John, Jan and Jiang each have a cake. I am taking turns eating their cakes. They seem to think this is a contest among them, the winner being the one with the least cake left on his plate.
Negative or low interest rates does not create inflation because: 1. lower cost of capital means more supply and thus lower prices. 2. Over time the deflationary effect of accumulated debt becomes larger than the stimulative effect of lower rates. 3. Lower return on savings (witch are greater than borrowings) create less demand. The joke is on everyone who does not get this. Being braindead must be a requirment for being a central banker.
So that's how the economy works. You should send this post to Harvard so they can teach it. I don't know if they have an economics department. It might be part of the School of Psychology.
this is true they want the economy to grow so they definitely want more supply the trick is to get demand for all this supply so high so inflation reach at least 2%
Canada is winning by far. They managed to depreciate by 40% vs US dollar. At one point it was the worst performing currency in the world and was easily beating the Ruble and Zimbabwe
The BoC is run by the guy who is the former head of Export Development Canada so he thinks the only way out is to make the loonie equal to the peso. It is helping his exporter buddies. But now people are paying 5- 15% more for fruits/veggies since 80% is imported. Somehow inflation still hasn't meet BoC targets.......