Faculty note: Russ assesses potential for ‘currency wars’
Business Administration Prof. Meir Russ of UW-Green Bay’s Cofrin School of Business published another essay recently at “Leonardo,” an online salon managed by the non-profit International Center for Foreign Relations that counts subscribers and contributors in more than 30 countries. His topic is “Currency Wars: Are They for Real?” Russ writes that the political inclination toward protectionism in many countries, with currency manipulation and rising tariffs — at a time of unprecedented uncertainty regarding the Euro, the European Union and potential debt defaults — exacerbates the risk of a global meltdown. In the United States, meanwhile, the U.S. Dollar remains strong enough to be attractive to cash hoarders around the world, which has the effect of making American exports less competitive and keeping foreign debt repayment costly. There’s hope that China will further adjust its undervalued Yuan, but there are many reasons to believe Westerners shouldn’t hold their breath for immediate action. Interesting analysis.