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As Glasner says, expansionary monetary policy can cause currency depreciation — but it is not currency manipulation.
The next threat may be capital controls, but the prospect of such controls may cause currency flight; best to get your money out while you still can.
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That would result in more capital inflows and cause currencies to appreciate.
Interest rates clearly need to be raised by a lot, but a tidal wave of capital could either boost domestic liquidity or cause currencies to become overvalued.
But higher rates could simply attract yet more cash from abroad and cause currencies to appreciate even further — an unpalatable development at a time when the global economic backdrop remains tough.
It can soar unexpectedly with new discoveries, thus causing currency values to fluctuate.
First, advanced countries plunged into a prolonged slump, leading to very low interest rates; capital flooded into emerging markets, causing currency appreciation (or, in the case of China, real appreciation via inflation).
And before the deal, Iran did suffer enormously, with sanctions causing currency inflation, medicine shortages, and damage to the national automotive industry.
Printing money is inflationary and causes currency and debt revulsion (The inflationary impact depends on the marginal propensity to save in the private sector i.e. the demand for credit).
Already, jittery investors have forced Brazil to scale back bond sales as interest rates soared and caused currencies in Asia like the Korean won to weaken.
Returns can be even higher if those yen are invested in places like Australia and New Zealand, where rates are higher and a commodities boom has been pushing up inflation and causing currencies to appreciate.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com