Following every round of quantitative easing (QE) by the US Federal reserve, the Brazilian finance minister Guido Mantega, has warned of trade and currency wars as Brazil’s currency and current account deficit (CAD) reached new peaks. Even in Asia, excluding China, the aggregate current account balance turned into a deficit from mid-2011. Other big emerging markets (EM) like Turkey were no exception. With its CAD at a historical high in 2011, the Turkish Central Bank (CBT) switched to unorthodox policies that aimed for a weaker lira to boost export competitiveness. In early 2013, the East Europeans joined in from Polish Economy Minister Piechocinski to Hungary’s Matolcsy arguing for weaker currencies. As the Japanese central bank initiated its quantitative easing, the Russian Central Bank governor, Ulyukayev declared that the world economy was “on the brink of currency wars”.