by John Rubino
One of the first results of Britain’s voting to leave the European Union was a sharply lower pound. Which means the UK is now winning the currency war. Henceforth its exports will be cheaper around the world, enabling its major companies to sell more stuff, make more money and hire more people. Inflation will pop, lessening the burden of government and consumer debts, and — other things being equal — growth will be faster.
But since in a fiat currency world foreign exchange fluctuation is a zero-sum game, for Britain to win a currency war battle means someone else has to lose one. And this time around the really big loser is Japan. Here’s the yen versus the pound over the past year: