We analyzed earnings calls of a subset of the Fortune 2000 companies with at least 15 percent or more international revenues in at least two currencies. The numbers reveal here top-line impacts reported during fourth quarter earnings calls by companies within that subset.
Most of the media attention focused on the currency war recently has been on how dangerous it is. But that begs the question: if currency war is so bad, and it creates a competitive devaluation race to the bottom, why do countries engage in it? Currency wars are politically motivated, and politicians often find strong incentives to engage in competitive devaluation. Here’s why.