The current financial system, with governments and central banks controlling the flow of money, creates impediments for people’s economic freedom. Among them is the danger that the ruling class will try to hide its mismanagement of the country’s affairs by preventing people from voting with their wallets and trying to secure their savings on safer shores. The latest example of this comes from Argentina where capital controls are now back in effect.
Also Read: Argentina’s Peso Collapse Shows Governments Shouldn’t Control Money
Just An(other) Emergency Measure
President Mauricio Macri of Argentina re-introduced capital controls on Sunday in an effort to prevent further collapse of the peso (ARS) exchange rate and a possible default on government bonds. All citizens were barred from making over $10,000 worth of conversions to foreign currency per month. Companies now have limitations on their ability to legally purchase dollars on the open market without authorization, crucial for trading with international partners or to…