Currency Wars in the Competitive Strategy of Open Economies (on the basis of Baroque Style (ASP) Ltd.)

Abstract

Currency wars are attempts of two or more countries to improve their competitive position among other countries by devaluing their national currencies. For each country, devaluation provides at least a temporary value advantage that increases the competitiveness of domestic firms. The aim of this paper is to study the role and significance of currency wars for the formation of competitive strategies of open economies. The main tasks are to identify the role of currency competition in today's globalized world, to investigate the historiography of unleashing the currency wars, to establish cause-and-effect relationships in the process of currency wars, to analyze international monetary relations as integration and competition at the macroeconomic level, to reveal the problems of modern currency wars formation, and to investigate the international practice of preventing the currency wars. This work deeply analyses currency wars from a theoretical perspective, looks at ways current currency competition has impacted business development, studies the historiography of three currency wars and suggests ways of preventing their formation in the framework of competitive economies.