Policy insights

Policy Insights

Policy Insight 70: The euro in the 'currency war'

All currencies cannot be weak at the same time – if one currency weakens, at least one other must strengthen. From this unpleasant arithmetic emerges the concept of 'currency wars', a mutual and vain race to the monetary bottom. The reality, however, is somewhat more complex.

Publication file

PDF document / 472.82 KB


Bénassy-Quéré, A, P Gourinchas, P Martin and G Plantin (2014), Policy Insight 70: The euro in the 'currency war', CEPR Policy Insight No 70, CEPR Press, Paris & London. https://cepr.org/publications/policy-insight-70-euro-currency-war