Mantega popularized the term currency war to describe policies aimed at boosting competitiveness through weaker currencies.
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Currency wars are back, although this time the goal is to steal inflation, not growth.Now, many see lower exchange rates as a way to avoid crippling deflation.Weak price growth is stifling economies from the euro region to Israel and Japan. Eight of the 10 currencies with the biggest forecast declines through 2015 are from nations that are either in deflation or pursuing policies that weaken their exchange rates, data compiled by Bloomberg show. At 0.3 percent in September, annual inflation in the 18-nation bloc remains a fraction of the ECB's target of just under 2 percent.New Zealand, where second-quarter annual inflation was the fastest in 2 1/2 years, announced last month its biggest currency intervention in seven years, sending the local dollar to a 13-month low.That follows a 9.2 percent slide since mid-year, the third-biggest among 31 major currencies.
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