Israel and the Global Currency War
Strong currencies are evidence of strong economies, but a very strong currency weakens the economy, as is now the case in Israel. That is why many countries around the world work to weaken their local currencies as compared to other currencies, thereby giving themselves a competitive edge over other countries in the global marketplace. This phenomenon has been called the currency war. While Israel too is involved in this currency war, it is at a distinct disadvantage. The strength of the shekel will eventually lead to Israel’s defeat in this war, and is liable to place national growth at risk and severely damage the labor market.- Tuesday, January 7, 2014