5 Jul 2014
Has Europe lost the Currency War?
Session 16
While many countries conduct exchange-rate policies, which positively affect competitiveness and investments,Europe isthe only monetary zone that does not havean exchange-rate policy. In spite of its recent strategic changes, the European CentralBank’s mission is still the control of inflation.
What is the magnitude of these exchange rates’ misalignments on investment and off-shoring by European firms? Can this be remedied by extending the ECB mandate? How could such a turnaround be included in a global governance of exchange rates, which could contribute to the control of the “currency war”?