From Jim Rickards, Editor, Currency Wars Alert:
In describing the dynamics of currency wars, I consistently use metaphors such as a tug of war or seesaw. This is to indicate that currency wars are never a one-way bet. Exchange rates go back and forth repeatedly.
The currency war that lasted 1921–36 is a good example. In 1921, the Germans destroyed their currency in the famous Weimar Republic hyperinflation.
In 1925, France and Belgium devalued their currencies. That made British pounds sterling and the U.S. dollar stronger.
In 1931, the U.K. struck back by devaluing pounds sterling. This put the pressure on France and the U.S.
Then, in 1933, the U.S. devalued the dollar, putting pressure back on the U.K. and even more pressure on France. Finally, in 1936, France and the U.K. both devalued against the dollar again.
This was the infamous sequence of the “beggar thy neighbor” devaluations.