Sunday, October 10, 2010

Currency war threatens

Differences that threaten the outbreak of a currency war persisted after a weekend meeting of global finance ministers, who left without resolving what to do.

Various nations are seeking to devalue their currencies as a way to increase exports and jobs during hard economic times. The concern is that such efforts could trigger a repeat of the trade wars that contributed to the Great Depression of the 1930s as country after country raises protectionist barriers to imported goods.

"Currency disputes can easily become trade disputes," cautioned Canadian Finance Minister Jim Flaherty.

No comments:

Post a Comment