Saturday, January 29, 2011
Specter of Currency War Rears Its Head at Davos
by Scott Baker
DAVOS, Switzerland (AP) — A fight is looming between rich and poor countries over the value of the dollar and other key currencies, as governments use monetary tricks to boost their national recovery at the expense of other nations, political and business leaders warned Saturday.
Washington has been leaning hard on Beijing to allow the Chinese renminbi to rise, saying it is being kept artificially cheap to maintain China’s cheap labor advantage.
At the same time the United States, Britain and others have encouraged their central banks to pump money into the system as a means of stimulating the economy. Read More