The Wave of Protectionism is rising

MacroMan points to several interesting articles showing that Brazil, Taiwan, South Korea and Indonesia are following the path of the US and the UK (and probably many others I haven't spotted yet) into protectionism. This is a trend I have been forcasting for quite some time, and which is going to make things worst for the economy and the people in general:

(FT - 2009-10-20) Brazil’s currency and stocks fell sharply on Tuesday after the government imposed a 2 per cent tax on foreign portfolio investments to stem the rapid rise of its exchange rate.

(Reuters 2009-11-19) - Indonesia's central bank is "studying" possible limits on foreign ownership of short-term debt, but has no plans for controls on capital or the currency.

(Asian Business - 2009-11-19) South Korea announced measures on Thursday aimed at tightening control over foreign exchange liquidity to make the banking system less vulnerable to the capital flight seen during the financial crisis.

(WSJ 2009-11-10)--Taiwan's financial regulator said Tuesday it is banning foreign investors from putting money in time deposits. The ban is effective immediately, and foreign investors can't extend their existing time deposits, the Financial Supervisory Commission said in a statement.

Other related posts here.

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