Mohamed A. El-Erian — Beggar Thy Currency Or Thy Self?

Not many countries nowadays seek a strong exchange rate; a few, including systemically important ones, are already actively weakening their currencies. Yet, because an exchange rate is a relative price, all currencies cannot weaken simultaneously. How the world resolves this basic inconsistency over the next few years will have a major impact on prospects for growth, employment, income distribution, and the functioning of the global economy.

Project Syndicate
Beggar Thy Currency Or Thy Self?
Mohamed A. El-Erian | CEO and co-Chief Investment Officer of PIMCO