On the competitive devaluations

I like this post by Menzie Chinn at Econbrowser - primarily because I agree with it ;)  It is well worth a read on its own.

I will however take some bits out for those who don't want to leave right now:

In a game theoretic context, we usually think of competitive devaluation as a form of the prisoner’s dilemma, where the devalue option dominates the no-de…