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exchange control |
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But Chinese officials have indicated that they plan to introduce a system of exchange control comparable to Taiwan's that will permit registered institutional investors to purchase the A shares of Chinese companies. Government spending provided all the happy effects of mild inflation; while political dictatorship, with its destruction of trade unions and rigorous exchange control, prevented such unfortunate consequences as a rise in wages, or in prices. Twenty years ago, when even advanced countries were suffering from double-digit inflation, when intrusive foreign exchange control was a source of major economic distortions and wide-spread corruption, to preach the virtues of price stability and currency convertibility was clearly to move the world in the right direction. |
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