Coping With Currency Restrictions

ajoknoblauch

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My brother-in-law and his family just arrived in Varas from Chiloé, before he returns to Río Negro in a couple days. This may be self-promotion, but I think his story is instructive as to how some Argentines are coping with currency exchange restrictions: http://tinyurl.com/pxs9etb
 
Ha, supermarket strategy. That's one of the 1,000s reasons why I told Matias his beloved restrictions don't work. Meh.

Nice article though. How far south is Puerto Varas though, if it was cold?
 
Ha, supermarket strategy. That's one of the 1,000s reasons why I told Matias his beloved restrictions don't work. Meh.

Nice article though. How far south is Puerto Varas though, if it was cold?

Varas is directly west of Bariloche. The last couple days have been wet and cool - comparable to Seattle - but that ended a long run of warm dry weather.
 
Ha, supermarket strategy. That's one of the 1,000s reasons why I told Matias his beloved restrictions don't work. Meh.

Nice article though. How far south is Puerto Varas though, if it was cold?



Im a good person and I will explain it again. Please show me where you disagree or what measure you imagine to solve this problem. I DO NOT SUPPORT RESTRICTIONS, BUT I UNDERSTAND THEM. I gave the reasons why they exist, I explained what happens to this country every 10 years. Is the restrictions or the country explosion (not kidding). I think restrictions will be fine if they avoid the huge chaos we have every 10 years. I dont think they will make it but it worth the try. If they make it, it will be a triumph.

Is the only way to avoid the "cuello de botella" we have had in the last 60 years (sincce 1960s) with dollars. This people who especulate with devaluation dont trust the country, no matter what the government does, they are all for a devaluation so their dollars could worth more. They exchange their pesos to dollars and speculate again the peso. Theres no possible country with the main economic actors betting against you. Maybe you dont get this because you earn in dollars so you are in that side too. Maybe you dont want a strong peso, you want a strong dollar to peso relation, and thats why in some way your taking that side of the problem.

Lots of governments in this 60 years tried to stop this flight of capitals, so this is not the first restriction. Even the militars restricted. No matter ideology, no matter which policies they have made, no matter if these speculators got beneffits from the government or if it was perjudicial to them, they just simply get the money out of this country, and wait till falls apart. Then come, invest, and 10 years later get the money out.

Its like inflation, theres pretty much nothing you can do, we have this problem since 1945, and lots of governments tried to stop it, fruitessly. Control prices, seem to me like dollar restrictions, probably they wont work, but what else can you do? its a problem of the country, not of one particular government.

So restrictions may not work 100%, but is the lesser of two evils, and it surely help avoiding major flights.
 
Im a good person and I will explain it again. Please show me where you disagree or what measure you imagine to solve this problem. I DO NOT SUPPORT RESTRICTIONS, BUT I UNDERSTAND THEM. I gave the reasons why they exist, I explained what happens to this country every 10 years. Is the restrictions or the country explosion (not kidding). I think restrictions will be fine if they avoid the huge chaos we have every 10 years. I dont think they will make it but it worth the try. If they make it, it will be a triumph.

Is the only way to avoid the "cuello de botella" we have had in the last 60 years (sincce 1960s) with dollars. This people who especulate with devaluation dont trust the country, no matter what the government does, they are all for a devaluation so their dollars could worth more. They exchange their pesos to dollars and speculate again the peso. Theres no possible country with the main economic actors betting against you. Maybe you dont get this because you earn in dollars so you are in that side too. Maybe you dont want a strong peso, you want a strong dollar to peso relation, and thats why in some way your taking that side of the problem.

Lots of governments in this 60 years tried to stop this flight of capitals, so this is not the first restriction. Even the militars restricted. No matter ideology, no matter which policies they have made, no matter if these speculators got beneffits from the government or if it was perjudicial to them, they just simply get the money out of this country, and wait till falls apart. Then come, invest, and 10 years later get the money out.

Its like inflation, theres pretty much nothing you can do, we have this problem since 1945, and lots of governments tried to stop it, fruitessly. Control prices, seem to me like dollar restrictions, probably they wont work, but what else can you do? its a problem of the country, not of one particular government.

So restrictions may not work 100%, but is the lesser of two evils, and it surely help avoiding major flights.

So when a policy fails repeatedly, it makes sense to try it again?

I don't much care whether it's a strong or weak peso, but I'd like to see a stable peso and institutional continuity.
 
So when a policy fails repeatedly, it makes sense to try it again?

I don't much care whether it's a strong or weak peso, but I'd like to see a stable peso and institutional continuity.


I dont think it fails 100%. It must work in maaaaaany ways so thats why still in force.
I think it works to avoid big capitals flights. I dont think a credit card purchase in the supermarket is the reason why restriction exists.
 
I dont think it fails 100%. It must work in maaaaaany ways so thats why still in force.
I think it works to avoid big capitals flights. I dont think a credit card purchase in the supermarket is the reason why restriction exists.

The people with lots of money always find a way. Others have to use their wits, but the policies still cause major distortions in the economy.
 
what they should be doing is work on long term resolutions to fix the economy of the country, and thats where my issue lies with these effortless restrictions that will not reap any long term benefits on the country's economy and well being of its citizens.
 
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