For some time now, global powers have been engaged in a currency war, which can simply be summed up as: mine is weaker than yours. The implicit calculation is that a cheaper currency would spur exports, making up for the demand shortfall that has afflicted the Western economies in particular after the financial meltdown. However, the reality is far less linear. At the centre of this battle are China, which has emerged as the second largest economy in the world, and the US, still the numero uno of the global economic order. Outliers such as India have a lesser stake in this battle, but are nevertheless being drawn into what is a very contentious debate. A temporary truce was managed at the meeting of the finance ministers of the Group of 20 countries at Gyeongju, South Korea. But nobody is willing to bet on whether the truce will hold.
To help readers understand the underlying issues, many of which are very complex and nuanced, Mint and Project Syndicate present the expert perspectives of 12 specialists.