Japanese actions risk igniting currency war

According to experts opinion, the Japanese government decision may ignite the currency war. The analysis of the latest actions showed that the сentral bank boosted its quantitative easing efforts. This program tends to lead to devaluation of the national currency. The Prime Minister of Japan planned to weaken the currency in order to balance the national deflation. Normally, any given action may cause all sorts of results. Incidentally, if one country weakens its currency, there can be implications for others. The outsiders examined the tendency and admitted that the Bank of Japan sparked a currency war in Asia and all over the world. Professor at NY University and Chairman of Roubini Global Economics Nouriel Roubini, pointed out in the article at Project Syndicate, that the easing of the currency, initiated by the Bank of Japan, would lead to a strengthening of the U.S. dollar and to an economical growth slowdown.