One more such victory
ACADEMIA DE STUDII ECONOMICE BUCUREȘTI
Who wants to win the “currency war”?
A study on the article “One more such victory” from “The economist”
Anul 2011
Facultatea de Finanțe, Asigurări, Bănci și Burse de Valori
One more such victory
The emerging economies are winning the currency war. No one is celebrating
The article we are commenting on today appeared in the online edition of “The Economist” on October, 1st and is called “One more such victory”. It brings out the situation of some emerging economies that seem to be winning the so-called currencies’ war in the context of the global economic crisis. We learn about the central banks’ efforts to slow their currencies’ fall, because even though these tumbling exchange rates might be considered a victory, it comes at such high costs, that nobody is celebrating. The article also mentions important aspects of some emerging economies, such as Brazil, China, Korea, Poland, Thailand etc., the situation of Greece, the stagnation of the American economy and the slow pace the European one converges on. In addition, we find out about international trade, inflation, exchange and interest rates and the actions that governments take in order to stimulate their countries’ economies. However, the author does not forget to mention the consequences that some of these actions may have on the future development of certain economies. For example, the central Chinese government may decide that the economy needs a new stimulus, but banks may not be that willing to get involved; it this happens, the situation will become slightly different than expected. As it usually happens, no matter how high their success rate is, big chances are for casualties to exist.
In this article we have identified the following keywords: currency, emerging economy, bank, interest and exchange rate, government, global spending.
Paragraph 1.
In the beginning, we find out about the Brazilian finance
Who wants to win the “currency war”?
A study on the article “One more such victory” from “The economist”
Anul 2011
Facultatea de Finanțe, Asigurări, Bănci și Burse de Valori
One more such victory
The emerging economies are winning the currency war. No one is celebrating
The article we are commenting on today appeared in the online edition of “The Economist” on October, 1st and is called “One more such victory”. It brings out the situation of some emerging economies that seem to be winning the so-called currencies’ war in the context of the global economic crisis. We learn about the central banks’ efforts to slow their currencies’ fall, because even though these tumbling exchange rates might be considered a victory, it comes at such high costs, that nobody is celebrating. The article also mentions important aspects of some emerging economies, such as Brazil, China, Korea, Poland, Thailand etc., the situation of Greece, the stagnation of the American economy and the slow pace the European one converges on. In addition, we find out about international trade, inflation, exchange and interest rates and the actions that governments take in order to stimulate their countries’ economies. However, the author does not forget to mention the consequences that some of these actions may have on the future development of certain economies. For example, the central Chinese government may decide that the economy needs a new stimulus, but banks may not be that willing to get involved; it this happens, the situation will become slightly different than expected. As it usually happens, no matter how high their success rate is, big chances are for casualties to exist.
In this article we have identified the following keywords: currency, emerging economy, bank, interest and exchange rate, government, global spending.
Paragraph 1.
In the beginning, we find out about the Brazilian finance