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The currency wars have begun
Published: Mar 6, 2015 2:40 a.m. ET
An earlier version of this story gave an incorrect date for the beginning of the European Central Bank’s QE program. The story has been corrected.
Central banks around the globe are rushing to ease monetary policy as looming deflation and still-weak commodity prices weigh on growth expectations.
On Tuesday, the Reserve Bank of India surprised the market by cutting rates for the second time this year.
And with the European Central Bank beginning its massive stimulus plan on March 9, more easing is expected, as policy makers struggle to keep their currencies fairly valued against a rapidly weakening euro.
Mohamed El-Erian has described it as “accidental,” but however you characterize it, it’s hard to deny that a global currency war has already begun.
Here’s a map showing which central banks have already fired their opening salvo in 2015.
[You must be registered and logged in to see this link.]
Published: Mar 6, 2015 2:40 a.m. ET
An earlier version of this story gave an incorrect date for the beginning of the European Central Bank’s QE program. The story has been corrected.
Central banks around the globe are rushing to ease monetary policy as looming deflation and still-weak commodity prices weigh on growth expectations.
On Tuesday, the Reserve Bank of India surprised the market by cutting rates for the second time this year.
And with the European Central Bank beginning its massive stimulus plan on March 9, more easing is expected, as policy makers struggle to keep their currencies fairly valued against a rapidly weakening euro.
Mohamed El-Erian has described it as “accidental,” but however you characterize it, it’s hard to deny that a global currency war has already begun.
Here’s a map showing which central banks have already fired their opening salvo in 2015.
[You must be registered and logged in to see this link.]
