Government bond markets  Primary markets The primary markets have worked reasonably well in light of the severity of the financial and economic crisis. The uncertainty in the financial markets, coupled with risk aversion among investors, led to rising demand for risk-free assets, including government bonds.
Any currency wars which inhibit international trade will affect economies highly dependent on exports and will certainly trigger uncertainty, with an adverse impact on capital flows to emerging market economies. It is for this reason that the G-20 agenda argues against the use of competitive devaluations as a deliberate policy measure.