At 7:10 AM 2/23/95, Giacomo Pignataro wrote: >In the article, there is an interesting problem: how the financial/business >community is influenced by its perception of political stability. This is a >big issue in Italy, at the moment. And it is creating big problems to our >currency. However, is really the financial community only passively reacting >to its perception of political stability or is it also trying to influence >political stability by using financial investiments ? Isn't this a distinction without a difference? They see "stability" - which includes cheap, disorganized labor, a docile populace, and a friendly state - and invest. They see instability - the opposite of all those things - and they disinvest. Except insofar as excessive and/or rapid inflows of capital can be destabilizing, these perceptions become self-fulfilling: the "unstable" region faces capital flight and economic crisis, and therefore instability. Doug -- Doug Henwood [[EMAIL PROTECTED]] Left Business Observer 250 W 85 St New York NY 10024-3217 USA +1-212-874-4020 voice +1-212-874-3137 fax
