Thursday, May 11, 2006

Expropriation: a way NOT to build an economy

My note to all national leaders who have not had economics or finance classes. It may be tempting. It may even look like a great idea: a way of making up for past injustices (real and imagined). But expropriation is almost never a good means of building an economy. Why not? As Aguiar, Amador, and Gopinath write "...[the] threat of expropriation depresses investment, prolonging downturns." What

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