Hello John, > > Placing a penalty in order to keep money in is like the capital controls for > nation states, where they want to improve their economy by penalizing it > when people want to pull money out. This is meant to decrease capital > mobility and is referred to in economic circles as a "Keynes Tax". But a > Keynes tax doesn't work and only keeps out new money, hampers routine money > transfers, and distorts markets. Setting up barriers and friction for money > and products only leads to bad consequences. > It does depend on the type of economy of the country in question. Malaysia has imposed a Dollar-peg during the Asian crisis and defied Worldbank and IMF recommendations. Three weeks later the stock market stopped falling. Then real property sector came back and Malaysia returned to a postive trade balance.
Of course all liberals condemned it loudly, banks threatend and actually did pull out of Malaysia, foreign direct investment dropped and the IMF predicted Malaysia would fall back into the stone age of sorts. A year on Malaysia was growing by 7.8% in real terms, foreign investment was back, real estate rose 18% und unemployment fell below 2%. Well, to end the hero tale here, Malaysia is set to grow 4% this year, inflation is below 2% and foreign exchange reserves have quadruppeled. Guess what? The peg is still in place and the single one item that enables us to facilitate exchangers and charge these cut throat low fees for everything else we do... Of course, it's also why I vehemently defended the claim that making 40,50, 100% profit a year is no biggie... Honestly, I'm a devout Smithsonian of sorts, but when it comes to non-Western economies, things are indeed different in some of them. Cheers, Robert. budget & privacy website hosting http://www.cyberica.net budget & privacy domain registrations + mail http://www.u2planet.com/cfdomaintrust.html --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
