Free market capitalism has faced intense criticism in recent
years. Even that most basic tenet of the post-'70s era, the
free movement of capital and floating exchange rates, has its
critics. Some on the left believe that a government set on
fundamentally reforming capitalism might need to bring in controls
to prevent capital leaving the country and a sharp currency
devaluation.
I know of no major Western political party that advocates such
controls. But, as we've seen in recent years, the unthinkable
can become reality. It is in this spirit that we tackle the issue
of capital controls.
In the West we take for granted the right to change our national
currency into a foreign currency and spend overseas or buy foreign
assets.
