The regimes of foreign exchange rates and the wars as regards the exchance rates: Comparisons of Turkey with the given countries

One of the fundamentel problems of the global world is the wars of exchange rates. The wars of foreign exchange is an application on the part of the countries made for the purpose of keeping the monetary value of their own at low levels against the foreign money by limiting their importations, thus providing a superiority in their favor in the international trade. As soon as the policy of rate resting on fluctuation started and began to come into use widely, the countries began to attempt to take advantage by way of competitive devaluations. Nowadays there are some countries effecting the rate wars in a most effective way in the global world. China, the USA, Japan, Brazil and the countries in Euro Zone Area the leading ones among others. The fact that there are more than one countries in the world which apply the policy of competitive devaluation brings the other countries into this war. The rate wars in effect bring about various reasons and the international trade faces with stagnation. The present study deals with the regimes of foreign exchange rates and the wars there about. The effect of the regimes of foreign exchange rates over the rate wars occupies a fairly big room even today. In the first part of the present study, the formation of the foreign exchange rate, the diversities of views among the systems have been treated of and the concept of devaluation has been disclosed. In the second part, the occurrence of "Rate Wars" has been idealt, detailed knowledge of the periods they appeared, of the countries over which they were effective, their facts and of their continuation even today. In addition the crisis in 2008 and the monetary policies applied has been studied while the third rate war was explained. Also, the position of Turkey in the course of the aforementioned wars has been studied. As for the last part, the comparative analysis of Turkey and the given 5 countries has been made. The econometric analysis made has been effected, for the purpose of determining the effects of the last rate war that occurred, through the use of the data of quarters between the years of 2000-2018, thanks to the Granger Casuality Analysis. Key Words: Rate Wars, The Regimes of Foreign Exchange Rates, Competitive Devaluations, Monetary Policies.