Turkey's Lira Decline - Rooting Out The Speculators Isn't The Solution Gentlemen
Tim Worstall ,
This is not an unusual occurrence, something appears to go wrong with an economy and the government then insists that it's all the speculators' fault. Thus the solution is to root out the speculators and everything will be fine. Except, of course, this is not entirely nor absolutely what is happening. Speculation does indeed of course exist, as do speculators. But speculators who manage to make money (and the other kind, those who lose it, rapidly leave the market through being bankrupt) act upon some underlying thing which is going wrong with an economy. They are a symptom, not a cause.
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