This is a simple
and short article explaining ‘what is an economic war’. The term: “Trade War”
has become current term. Earlier popular term was “Currency War”. Economic War
is a broader term covering all these smaller wars.
Some common queries
may be: “Why this War?” “What may be the impact of a global economic war on
India/ on global economy?” “Can we protect India from the ill effects of a war
amongst other nations?” “How is it that President Trump imposed sanctions on
Turkey (In August 2018) and Indian Rupee went down?”
(i) Historical reasons leading to current
Trade War; and
(ii) A few probabilities as results of war. These are considered guesses.
I don’t know actually how future will unfold.
Global events like
Economic Wars are like “elephants”. Writers and observers are like “the
six blind men”. Everyone looks at one or two aspects. Warring parties
involved also create deliberate confusions. I am presenting my views. There are
several other views simultaneously prevalent. Some philosophical thoughts on
Wars are given in notes at the end of the article.
Economic War is fought mainly for economic benefits using economic instruments
as weapons. Its economic impact can be more devastating than a weapons war. And
yet, there may be no loss of life – at least directly due to war.
1.3 When the war is between a
giant like USA and a smaller country like Venezuela; the smaller nation may get
economically destroyed. When the war is between two giants like USA &
China, both may be damaged. If a full scale Economic World War eru