Currency dislocations, especially in emerging markets, are having major economic impacts and may require a coordinated response, according to the New York Times.
So great are the concerns among policy makers about the turmoil in currency markets that it has prompted talk of a coordinated intervention by the leading industrial countries in coming days, to quell the soaring dollar and put a floor under emerging-market currencies.
The US is very reluctant to conduct currency intervention, but it was much more reluctant to nationalize an insurance company and pump billions of dollars into the banks, so breaking the intervention-taboo is small potatoes at this stage.
