Currency war ( 2010 )
- Gargle it: currency war
- new word = explain.
One week before the global press started to print about currency war, I asked my teacher at beginners Macroeconomics class this question. Are there any long-term risks with keeping a currency artificially low, using unnatural economic methods? He answered overheating of the economy and then inflation.
The week after... the word currency war was all over the media just as my teacher has predicted. He then asked the class if anyone knew what would happen if all the countries would fight each other by pressing down their currencies. Nobody had an answer, so he said inflation!