This research article seeks to provide an in-depth examination of the application of game theory and strategic interaction models in elucidating the complex dynamics underlying international currency wars. It aims to analyze how rational, strategic decision-making processes influence the behaviors of sovereign states as they engage in competitive and cooperative monetary policies within the interconnected global economic system. By integrating advanced economic terminology and providing comprehensive explanations, this paper aims to illuminate the strategic incentives, equilibrium outcomes, and potential policy implications that characterize these covert yet significant financial conflicts.
Lie Chun Pong (Wed,) studied this question.