The plot thickens...

boddhisatva kbevans at
Mon Oct 12 02:19:36 PDT 1998

To whom...,

I still think that rather than employing capital controls, nations that are too small to fend off currency speculators (all but about a dozen, maybe a dozen and a half nations, I think) should "front-run" themselves. If they quietly build long positions ahead of their own interventions, they will not only make money, but make the shorts skittish. If the punters holler, what can they do? The worst that can happen is their currencies get dropped from certain exchanges. So what? Then you've just gotten the currency controls that were your last resort anyway. Otherwise, you are just allowing big hedge funds to take the other side of trades on currency reserves.


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