There the IMF/World Bank triggered currency meltdowns in the developing world, followed by enforced privatization of rural land for agribusinesses, as well as urban social housing and services for the poor.
Japan's Asian neighbours are also concerned: a fall in the yen helped to trigger their currency crises in 1997-98.
Japanese banks were probably the biggest culprits in triggering the currency runs.
Nonetheless, many are fretting that China's exchange-rate adjustment has triggered a "currency war," with other emerging economies devaluing as well.
This will be a kiss of death for the euro-zone real sector because, to the weaker competitive conditions triggered by currency appreciation, price deflation may add two lethal factors: (1) debt deflation (i.e., increase in the real value of the debt not indexed to prices, as was pointed out long ago by Irving Fisher), and (2) the expectation that prices will continue falling.
Nicholas Teo, of CMC Markets warned the move could trigger a new currency war if central banks responded by trying to depress their country's own exchange rates.
New American penalties on Iran's central bank and those doing business with it have helped trigger an enormous currency devaluation.
Here's Cooper's balanced take on the showdown: "The current state of U.S. policy stimulus, if reversed appropriately at just the right time, would not trigger inflation and currency decline as the economy is running far below full capacity.
A bond default could trigger another major currency devaluation, higher inflation and economic stagnation, Kanenguiser said.
For a time in 2015 it seemed Athens, under its new leftwing government, would crash out of the euro, triggering a wider currency and market collapse.
