The best in Sports and Finance

Currency War – Without Borders!

As written earlier this year the currency war is on with some countries trying to devalue their own currencies and thereby destabilizing nations that have pegged their currencies. The most influential currencies globally are still the USD and the EUR which roots go back to pegs of D-Mark times.

After Switzerland was forced to give up its peg in January eyes moved on to other smaller economies in Europe like Denmark that so far has managed to defend the Krone by repeatedly cutting interest rates. The question again is how long will hey maintain their “success” not becoming another Switzerland?

Since 2008 the number of currencies that are monitored by the IMF that are free floating (no intervention) has decreased from 40% to 34%. The problem with pegging currencies is simply that central banks rely on the mercy of anothers country fiscal and monetary policy. That gives them less freedom to respond to domestic goals such as jobs or containing prices.

How can we get back to normal?

 

If you are in the process of setting up aFamily Office or know someone who is going through the process and would like any advice or help with initial hires the please do not hesitate to get in contact with us via LNKD or follow us on TWTR Swiss Family Office.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s