Economics
Inflation Augurs New Era of Central Bank Currency Tensions
- Stronger currencies can help offset imported inflation
- Central bank and finance ministers meeting in Jakarta for G-20
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Once accused of pushing their currencies lower to spur growth, top central bankers are now looking to appreciating exchange rates to help fight the menace of inflation.
It’s been almost 11 years since Brazilian Finance Minister Guido Mantega accused rich nations of waging a “currency war” by cutting interest rates to drive their economies out of recession through cheaper currencies, in turn pushing up the exchange rates of countries such as his.