« ON A CHANGE OF PACE | Main | ON A NEW PLAYBOOK FOR CHRYSLER »

Saturday, June 06, 2009

Comments

Alex Tolley

"Stanching the free flow of capital would be 21st century equivalent of the infamous Smoot-Hawley tariff, which importantly contributed to the contraction of global trade in the Great Depression...""

But we had currency controls post Bretton Woods with teh fixed exchange rate regime and that wasn't exactly disastrous.

As a worry wart, I do think that the US' needs for capital inflow could be a severe problem, especially if the USD starts to look really weak. At the least this will drive up interest rates, at the worst it could mean severe credit contraction as inflows dry up.

The comments to this entry are closed.

Some of the Blogs I Like

July 2011

Sun Mon Tue Wed Thu Fri Sat
          1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31