All the recent talk of currency wars is overdone and holds few implications for the US economy. The rise in the dollar against the yen has just been offset by a fall against the euro. The dollar trade-weighted index is broadly at the same level as when the Fed started expanding its balance sheet in 2008. The US therefore appears to be neither a loser nor a winner in this imaginary conflict.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.