You may ask, shouldn’t we also devalue the peso, after all a currency war seems to be in play? 2  BIS central bankers’ speeches  Textbooks describe competitive devaluation as a “beggar thy neighbor policy”.
But that said, we know that policy makers will always do what they believe would be best for their own specific needs, sometimes without much concern for the impact of their actions on other jurisdictions. This brings to mind a higher policy consideration – the principle of “enlightened self-interest” as espoused by the Bank for International Settlements.