Witness the re-bound of the Mercosur economies after they enacted sane economic policies. Far from being crippled by capital flight, they are now more stable and prosperous than when they were taking orders from the IMF.
And if (as it looks like) the Americans will need to do a complete overhaul of their currency before the fat lady sings, that would be an excellent time to institute some constraints on capital mobility - after all, you'd have to redeem your old dollars in US banks. Sure, they'll lose some € and Yen in the process, but we're hardly talking Argentina 3.0.
- Jake If you only spend 20 minutes of the rest of your life on economics, go spend them here.
