The truth that was illuminated at the G20 meeting.
If you assess currency manipulation by the impact of policy on exchange rates rather than the announced intentions of policymakers, we are all manipulating our exchange rates.
Er, so let's change the paradigm?
The Lesson of Japanese Lost Decade.
In a world of globalized trade and free international capital flows, the effects of a Keynesian approach to economic stimulus at the nation state level will dissipate across the globe and cannot be effectively targeted within the geographical boundaries of a national economy actively participating in the international trade (probably either as an exporter or an importer). You simply turn your currency into a funding vehicle for the carry trade.
Anyone care to speculate in the emerging markets using the dollar as a funding currency?