That neoliberal "free markets, free trade and free capital flows" theory isn't as advertised. Puncturing the myths.
Project Syndicate
Death by Finance
Dani Rodrik | Professor of Social Science at the Institute for Advanced Study, Princeton, New Jersey
2 comments:
"Third, floating exchange rates are flawed shock absorbers"
Good golly, miss molly. They really aren't. You just shouldn't be trading essential items priced in foreign currency that you can't live without. And you need to question what sort of risk transformation is happening in your repo markets. Duration transformation? Probably not a good idea. Banks should be doing that in domestic currency with access to the central bank. Buying food and energy with foreign currency? Insane.
Notice Rodrik's jab about Argentina and their "heterodox" problem? Right up there with Venezuela's dictatorship and all the other heterodox ideas. Lovely.
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