(edit this bracket out: i'm sorry for being unclear in my question, it was too mild or undirected earlier, i hope the following is better; thanks)

You keep hearing politicians and sometimes the biz press harp on "Currency Manipulation" when it becomes fashionable, and then the story subsides. But what is considered "manipulation" by central banks, also has market effects, no? So that "manipulation" is not really dangerous.

Am i correct that manipulation can be done by outright money printing, which is inflationary, or completely sterilized, which increases borrowing costs. So it seems all "manipulation" is having a market effect anyway (not a free lunch).

Are there other ways of doing manipulation? which of these two modes of manipulation is more popular? which one does the Unites States use, as the host of the Reserve Currency?

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    $\begingroup$ It would help if you could link to some specific examples, so that there's something for us to analyse. People mean lots of different things by "currency manipulation". Indeed, the thing you've described in your second paragraph would be called currency manipulation by some. As it stands, I'm not sure that this is an answerable question. It does read as if you just want to have a discussion about currency manipulation; but we do Q&A, not discussion. $\endgroup$
    – 410 gone
    Nov 10, 2015 at 16:19
  • $\begingroup$ I think the question should be open as it is more of a conceptual one and thus should not be dependent on cited examples to be valid. To the OP, yes the US monetary system can obtain a big advantage by inflating its currency (against say the Chinese). The problem is long term ramifications. It could spark a liquidity fire in which there would be a run on the dollar. International markets are not designed to be liquid (being ill-liquid is how you make money). Such a dollar crisis could cause a profound bank meltdown. I'm kind of out of room to say more :P $\endgroup$ Dec 4, 2015 at 3:52


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