Date: Mon, 28 Apr 2003 13:08:21 -0400
From: Esteban Perez <eperez@xxxxxxxxxxxx>
Subject: Re: Trade policy
To: pdavidson@xxxxxxx
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A quick comment. Some type of capital flows can be also be destructive for
fixed or pegged regimes. In more than one case of developing economy which
I am familiar with they lead to explosive processes and have to be offset
by some type of capital control.
>>> paul davidson <pdavidson@xxxxxxx> 04/28/03 01:16pm >>>
At 12:40 PM 4/28/03 , you wrote:
> >>> paul davidson <pdavidson@xxxxxxx> 04/28/03 12:36pm >>> wrote:
>
> AND THAT FREE CAPITAL FLOWS
>CAN BE HORRIBLY DISTRUCTIVE UNDER A FLEXIBLE EXCHANGE RATE SYSTEM --
> --------------------------------------------------------------------------
>------------------
>
>Is this independent of the state of the current account of the balance of
>payments and the type of capital flows?.
>
I said "can be" not must be!
Paul