Seoul hopes COEX Accord to bring peace to currency war
By Kim Tae-gyu
An increasing number of experts point out that the currency war involving the world’s economic powerhouses is developing into a “prisoner’s dilemma” scenario — each player does its best for its own benefits but the overall result is less than that desired.
They claim that Korea can play a pivotal role in resolving the stand-off as the host of the G20 summit, which will bring together heads of 20 nations to COEX in southern Seoul midway through next month.
“Countries around the world have intervened to depreciate their currencies of late, creating a lose-lose situation, which is very similar to the prisoner’s dilemma,” professor Yun Chang-hyun at the University of Seoul said.
“To grapple with the prisoner’s dilemma problem, a good solution would be to promote communication with each other. The G20 Summit would be the best place where such communications can take place to reach win-win agreements.”
The prisoner’s dilemma refers to a theory that demonstrates why two people might not cooperate even if it is in both their best interests to do so.
Oct 15, 2010
