Controlled dollar devaluation only hope to avert currency war
The top world economies, shaken by three years of financial turmoil, are scrambling to cap or weaken their currencies in a fight over fragile global demand for exports – prompting retaliatory capital curbs and damaging trade rows.
As G20 finance chiefs prepare to meet on October 22, they are no closer to resolution of the decade-old bugbear of global imbalances between export-driven economies – mostly developing nations such as China, but also Japan and Germany – and the big global consumers, the United States, Britain and elsewhere.
