Again, the distinction between monetary policies aimed at domestic objectives and tradediverting exchange rate devaluations or other protectionist measures is critical. The former can be mutually beneficial, the latter are not.
Indeed, it was this view that prompted the Group of Seven central bankers and finance ministers to issue a statement in February agreeing to refrain from actions focused on achieving competitive advantage by weakening their currencies and reaffirming that fiscal and monetary policies would remain oriented toward meeting domestic objectives using domestic instruments.7 Among the advanced economies, the mutual benefits of monetary easing are clear.