Tuesday , November 5 2024
Home / Naked Keynesianism / Debt in foreign currency or Too Much Government Intervention?

Debt in foreign currency or Too Much Government Intervention?

Summary:
[embedded content]Interview with an Argentinean radio (yes, in Spanish) on the Evergrande collapse and its possible consequences. It is clear to me that the dangers come more from having debt in foreign currency than the typical critique about crony capitalism, and the lack of credibility that The Economist, for example, has put forward. In The Economist view:Evergrande shows the importance of deeper financial reforms. But what might they look like? Liberal reformers have longed for a clean-up of bad debts, a loosening of controls over prices (including the exchange rate), transparency and independent courts that can enforce property rights. Such a system would allocate capital better and be less prey to moral hazard.Seriously. For those that think that the craze about financial

Topics:
Matias Vernengo considers the following as important: , , ,

This could be interesting, too:

tom writes Causes of the Ukraine War & the case for Georgian non-alignment — An interview I gave in Tbilisi, Georgia

Michael Hudson writes China: Local Flowers Bloom

tom writes Europe’s foreign policy has been hacked and the consequences are dire

tom writes The corruption of US foreign policy & weaponization of antisemitism

Interview with an Argentinean radio (yes, in Spanish) on the Evergrande collapse and its possible consequences. It is clear to me that the dangers come more from having debt in foreign currency than the typical critique about crony capitalism, and the lack of credibility that The Economist, for example, has put forward. In The Economist view:
Evergrande shows the importance of deeper financial reforms. But what might they look like? Liberal reformers have longed for a clean-up of bad debts, a loosening of controls over prices (including the exchange rate), transparency and independent courts that can enforce property rights. Such a system would allocate capital better and be less prey to moral hazard.

Seriously. For those that think that the craze about financial liberalization was over with the 2008 Global Financial Crisis.

Matias Vernengo
Econ Prof at @BucknellU Co-editor of ROKE & Co-Editor in Chief of the New Palgrave Dictionary of Economics

Leave a Reply

Your email address will not be published. Required fields are marked *