When it comes to currency wars, ECB president Mario Draghi made an amusing set of statements as excerpted from the Bloomberg article Draghi Seeks to Quiet Talk About Global Currency War

  1. “I find really excessive any language referring to currency wars.”
  2. “The less we talk about this, the better it is.”
  3. Draghi said he had “urged all parties” to exercise “very, very strong verbal discipline”
  4. The relative strength of the euro “is important for growth and price stability” and that “to the downside,” an “appreciation of the euro is a risk.” He said the E.C.B. would assess whether the exchange rate was having an effect on inflation.  

Let’s see if I have this straight: “The less we talk about currency wars the better, but we need to exercise very, very strong verbal discipline because currency war talk is excessive and the exchange rate may have an effect on inflation.”

Mike “Mish” Shedlock