On the heels of the U.S. Federal Reserve's announcement last month that it would launch a new round of quantitative easing--so-called QE3--by purchasing an additional $40 billion in mortgage bonds per month, Brazil accused the Fed of inciting a global "currency war" by adopting "protectionist" policies. Brazilian Finance Minister Guido Mantega suggested that an expansionary U.S. monetary policy would trigger volatile capital inflows into emerging markets like Brazil, causing currencies to appreciate and damaging trade. Mantega is "correct by saying that in the short run QE3 leads to pressures for the appreciation of currencies across the emerging markets space, which is stronger than the benefits that these countries are going to get from stronger U.S. growth," says Bernardo Wjuniski, a visiting professor at the Getulio Vargas Foundation and a senior analyst for Latin America at Medley Global Advisors. However, Wjuniski says, Mantega is "definitely exaggerating the impact that not only QE3 has on the Brazilian currency, but also the impact that the Brazilian currency has on the local manufacturing sector and on local growth."