Question: 1. What are competitive currency devaluations? What triggered them in 2003? 2. What mechanisms are used to create competitive devaluations? 3. What is QE2, and

1. What are competitive currency devaluations? What triggered them in 2003?
2. What mechanisms are used to create competitive devaluations?
3. What is QE2, and how does it affect the value of the U.S. dollar?
4. What are the effects of QE2 on other economies and why are nations opposed to it?
5. What ignited the fear of a currency war in 2010?
6. What are the similarities between 2003 and 2010?

Despite Bretton Woods, competitive devaluations have not disappeared. According to the Wall Street Journal (June 6, 2003, p. B12), ''A war of competitive currency devaluations is rattling the $1.2 trilliona day global foreign exchange market. . . . The aim of the devaluing governments: to steal growth and markets from others, while simultaneously exporting their problems, which in this case is the threat of deflation.''

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