Systems Theory and Unintended Consequences of Government-Motivated Currency Wars
Please see abstract below
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.
Additional content will be provided upon request.