Systems Theory and Unintended Consequences of Government-Motivated Currency Wars

Please see abstract below

Abstract: 

Although the actions initiated by Governments and Central Banks are intended to produce positive outcomes for the host country, financial implications for markets and the macro economy often produce uncertainty and detrimental consequences for consumers and investors alike. Using a foundation of Systems Theory and Complexity Theory, the multiple case study conducted sought to further understanding about why these unintended factors arise and to explore how financial risk for investors emanating from the uncertain future of a currency war may be mitigated. The research suggests that market volatility during and post the currency war is expected, that inflation and/or deflation will arise and that upheaval of the system of global currencies occurs as a result of the currency wars. By furthering understanding about the derivation of these economic consequences, long-term, retirement-planning investors can manage portfolio asset diversity to mitigate risk for expected returns on investment.

Keywords: Currency Wars, Complexity Theory, Systems Theory, Unintended Consequences, Inflation, Deflation, Financial Collapse.

This publication has been peer reviewed.
Publication Type: 
Journal Article
Authors: 
Craig Martin
Year of Publication: 
2015
Journal, Book, Magazine or Other Publication Title: 
The Journal of American Business Review * Cambridge
Volume: 
3
Issue: 
2
Pages: 
9-16
Publisher: 
JAABC
Date Published: 
Tuesday, December 1, 2015
Publication Language: 
English
ISSN Number: 
2167-0803
Editors: 
JAABC (Dr. Turan Senguder)
Boyer's Domain: 

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