Since July 2012, the euro appreciated more than 10% against the dollar, 6% against the pound sterling, and almost 50% against the yen (IMF 2014). Does this mean that the euro a casualty of a ‘currency war’? We believe the answer is ‘no’. The strength of the euro is the result of an overly restrictive monetary policy by the ECB.
The euro in the 'currency war'
Agnès Benassy-Quéré, Philippe Martin, 6 February 2014
CEPR Policy Insight No.69 is available to download free of charge here.
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