18 November 2013

Currency War III: How Will It Play Out?

Posted In: Economics, Portfolio Management

US Federal Reserve Chairman Ben Bernanke may not yet be among them, but a growing number of people seem to acknowledge that the world is engaged in a “currency war,” a term famously used in 2010 by Brazilian Finance Minister Guido Mantega to describe the competitive devaluations being orchestrated by developed nations in their attempts to spark economic growth.

“The world economic system is not always in a currency war, but when it is, it can go on a long time,” warned James Rickards, senior managing director at Tangent Capital Partners, who spoke at the Sixth Annual European Investment Conference in London. “They don’t have a logical resolution but go back and forth until there is an extreme intervention, likely a collapse or a shooting war.”

Continue reading on the European Investment Conference blog

Tags: CFA Institute Conferences, CFA Institute European Investment Conference, China, currency wars, Fed, Monetary Policy, US Federal Reserve, Warren Buffett

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About the Author(s)

Charlie Henneman, CFA

Charlie Henneman, CFA, is head of educational events and programs at CFA Institute. Previously, he was the director of structuring and operations at Indosuez Capital, the CDO (collateralized debt obligation) management group of Credit Agricole Indosuez. Henneman previously held several positions in credit and structured finance, including managing director at advisory boutique AGS Financial, senior vice president and chief credit officer in the new products and ventures group at Enhance Financial Services Group, Inc., and director in the new assets group on Standard & Poor's structured finance ratings team. He holds a BA in political science from the University of Rochester and an MBA in finance from the New York University Stern School of Business.