New round of quantitative easing monetary policy

　New round of quantitative easing monetary policy was seen as a U.S. to formulate U.S. policy. However the U.S. dollar as international reserve currency status of any decision to a "decision to the United States" will have an impact on the world economy. The most direct is the global exchange rate volatility.

War with the word seems to be more serious money, but whether the United States triggered a devaluation in the race it? If you choose to their own country A currency devaluation, printing money, made a 1 trillion, then in order to maintain exchange rate stability between the two countries, B countries will be printed 1 trillion in national currency. Then the C, D, E ... ... to trigger the chain reaction. This has led to rising risk aversion, and promote the international market gold prices, investors will become tons of it to buy gold, because they believe that when a number of countries regarded as weapons of quantitative easing, the exchange rate of the relative gains will eventually dissipate The only advantage is that the absolute price of gold increased.

U.S. dollar attempt to enhance the possibility of competition does not exist, that the Americans themselves know very well. For example always said that China's yuan is undervalued, but even so, the adjustment of the RMB exchange rate will not let American companies to move back to the manufacturing plant. Apple made in China all the iPhone, plus the wages of the workers even after more than 20 dollars per labor cost, while the wages of American workers is 10 times that of Chinese workers. It is also China's low wages created a low price, to maintain the American consumer desire. Almost impossible to tolerate the appreciation of the Japanese, Japan has gradually lost in the international market competitiveness of high-end products. EU still have to clean up the mess of sovereign debt, currency appreciation means that the decline in national income.

European emerging market countries and Japan are significantly differentiated, Australia and India have chosen to raise interest rates to fight inflation; China's future inflationary pressure is still huge, the possibility of further rate hikes is not without; While it is not, but the future of Japan and the EU will QE policy? Increase the possibility - because the United States so that they have no choice.

Depreciation of the contest may not be entirely the result of the economy, in order to address the financial crisis began to build the G20 frame cracks. G20 central bank governors and finance ministers last week, the meeting failed to reach agreement on the exchange rate. G20 summit next week what the outcome will be difficult to predict, but ignore the engine as a global economic recovery, interest in emerging market countries, must be a mistake.