The Third Currency War as an Effect of Post-Crisis Changes in the International Currency System. The Risk Aspect - the Case Analyses of Brazil
Aim/purpose - The objectives of the paper include: identification of factors that influence the directions of fluctuations of foreign exchange rates seen as manifestations of currency wars; description of the most important forms of currency wars conducted in the contemporary global economy (includi...
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doaj-35f9cd6674a744a3a0055e328871f6de2020-11-25T00:09:17ZengPublishing House of the University of Economics in KatowiceJournal of Economics and Management1732-19482018-03-013114918010.22367/jem.2018.31.08The Third Currency War as an Effect of Post-Crisis Changes in the International Currency System. The Risk Aspect - the Case Analyses of BrazilJacek Pera0Department of International Economic Relations Faculty of Economic and International Relations Cracow University of Economics, Cracow, PolandAim/purpose - The objectives of the paper include: identification of factors that influence the directions of fluctuations of foreign exchange rates seen as manifestations of currency wars; description of the most important forms of currency wars conducted in the contemporary global economy (including in particular the currently observed third currency war); analysis of risks to contemporary financial markets and national economies posed by the third currency war. Design/methodology/approach - The paper uses the method of critical analysis of the literature on the subject, as well as US-China and Brazil case analyses. The Propensity Score Matching method was used in the study. Findings - The research findings confirmed the following hypotheses: contemporary fluctuations of foreign exchange rates in the largest economies of the world confirm that the third currency war is ongoing; the risk of consequences of the currency war destabilises the international and local financial markets and trade transactions among them. Research implications/limitations - The limited scope of the research performed is due to the fact that emerging economies have no control of devaluation or revaluation processes in their respective countries. However, large economies, such as China or Japan, are able to create the value of their respective currencies, thus artificially controlling the competitiveness of their products and services. These differences between small and large economies limit and distort the scope of the research done. Originality/value/contribution - Identification, analysis and results of the risks to contemporary financial markets and national economies posed by the third currency war(original abstract)https://www.ue.katowice.pl/fileadmin/user_upload/wydawnictwo/JEM_Artyku%C5%82y_31_60/JEM_31/08.pdfExchange ratesRiskFinancial crisis |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Jacek Pera |
spellingShingle |
Jacek Pera The Third Currency War as an Effect of Post-Crisis Changes in the International Currency System. The Risk Aspect - the Case Analyses of Brazil Journal of Economics and Management Exchange rates Risk Financial crisis |
author_facet |
Jacek Pera |
author_sort |
Jacek Pera |
title |
The Third Currency War as an Effect of Post-Crisis Changes in the International Currency System. The Risk Aspect - the Case Analyses of Brazil |
title_short |
The Third Currency War as an Effect of Post-Crisis Changes in the International Currency System. The Risk Aspect - the Case Analyses of Brazil |
title_full |
The Third Currency War as an Effect of Post-Crisis Changes in the International Currency System. The Risk Aspect - the Case Analyses of Brazil |
title_fullStr |
The Third Currency War as an Effect of Post-Crisis Changes in the International Currency System. The Risk Aspect - the Case Analyses of Brazil |
title_full_unstemmed |
The Third Currency War as an Effect of Post-Crisis Changes in the International Currency System. The Risk Aspect - the Case Analyses of Brazil |
title_sort |
third currency war as an effect of post-crisis changes in the international currency system. the risk aspect - the case analyses of brazil |
publisher |
Publishing House of the University of Economics in Katowice |
series |
Journal of Economics and Management |
issn |
1732-1948 |
publishDate |
2018-03-01 |
description |
Aim/purpose - The objectives of the paper include: identification of factors that influence the directions of fluctuations of foreign exchange rates seen as manifestations of currency wars; description of the most important forms of currency wars conducted in the contemporary global economy (including in particular the currently observed third currency war); analysis of risks to contemporary financial markets and national economies posed by the third currency war. Design/methodology/approach - The paper uses the method of critical analysis of the literature on the subject, as well as US-China and Brazil case analyses. The Propensity Score Matching method was used in the study. Findings - The research findings confirmed the following hypotheses: contemporary fluctuations of foreign exchange rates in the largest economies of the world confirm that the third currency war is ongoing; the risk of consequences of the currency war destabilises the international and local financial markets and trade transactions among them. Research implications/limitations - The limited scope of the research performed is due to the fact that emerging economies have no control of devaluation or revaluation processes in their respective countries. However, large economies, such as China or Japan, are able to create the value of their respective currencies, thus artificially controlling the competitiveness of their products and services. These differences between small and large economies limit and distort the scope of the research done. Originality/value/contribution - Identification, analysis and results of the risks to contemporary financial markets and national economies posed by the third currency war(original abstract) |
topic |
Exchange rates Risk Financial crisis |
url |
https://www.ue.katowice.pl/fileadmin/user_upload/wydawnictwo/JEM_Artyku%C5%82y_31_60/JEM_31/08.pdf |
work_keys_str_mv |
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