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Soros, Stiglitz in Sri Lanka for economic forum

Nov 05, 2015 20:14 PM GMT+0530 | 0 Comment(s)

ECONOMYNEXT - Investor and philanthropist George Soros and interventionist economist Joseph Stiglitz will take part in an economic forum in Sri Lanka next year, Prime Minister Ranil Wickremesinge said.

Soros is the billionaire chief of Soros Fund Management who helped bust the Sterling Pound out of the inherently flawed European Exchange Mechanism (ERM) which tried to soft peg currencies to the Deutsche Mark, as the earlier collapsed Bretton Woods had tried soft-pegging to the US dollar.

Nobelist Stiglitz was Chief Economist of the World Bank during the Asian Financial Crisis, which also involved the collapse of unstable soft-pegs.

Soros who was also credited with speculating on Asian soft-pegs during the crisis, went away licking his wounds after trying to hit the Hong Kong dollar, not understanding that it was a currency board (hard peg) which could not be broken.

"We made a mistake" the Hong Kong head of Soros' Quantum Fund admitted later.

Speculators got squeezed badly in both spot and forward markets as interest rates rose sharply when the Hong Kong Monetary Authority steadily bought HK dollars sold by them with forex reserves and no new HK dollars were created (unsterilized currency defence).

Stiglitz shot to fame after he lamblasted the International Monetary Fund and his former workplace.

He is now at Columbia University spreading a philosophy including income inequality which strengthens hands of interventionist rulers who want to undermine freedom, increase taxes, grow the bureaucracy and in general interfere in the lives of citizens, hampering markets.

Meanwhile Wickremesinghe told parliament Sri Lanka has also been invited to take part in the World Economic Forum in Davos, Switzerland.

Euromoney, a financial magazine will also hold a conference in Colombo in January 2016, he said. (Colombo/Nov05/2015)


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