On Thu, May 21, 2009 at 12:47 PM, Jim Devine <[email protected]> wrote:
> michael a. lebowitz wrote:
>>     Define 'work'. Define 'long run'. Why do you think the point about
>> currency controls is to 'protect a currency's value'?
>
> I'm sorry. I missed the purpose of the Venezuelan currency controls.
> What was the point of them? Usually it's to shore up the exchange rate
> of a currency.



I am only guessing, but maybe the purpose is to stop the drain of
foreign exchange reserves the country needs to finance its imports and
also to protect its economy against speculative attacks?

This is, perhaps closely related to shoring up the exchange rate, but
it is not quite the same thing.
-raghu.



--
"I bought some batteries, but they weren't included." - Steven Wright
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