What is a Currency War?  by Scott Sery on January 30, 2013
Currency WarIf you follow the financial news you may have
recently heard about the currency war going on.  Most people
simply brush this aside not knowing exactly what it is and not
thinking it pertains to them.  However, currency wars are an
important part of the global economy.  A war begins when one
country tries to devalue its currency in order to become more
competitive in the world market.  What happens is that other
countries follow suit not wanting to lose their edge.  How it
works  Basically how it works is that one country will increase
their monetary supply.  This sudden increase will cause the
currency to become cheaper for other countries to buy it (we
usually just call this inflation).  Since most countries are not
in the habit of buying and selling actual currency, the way it
works is that the inflated country can now export their goods
more easily.  The importer will be able to purchase the same
product for cheaper, thus the exporter