3 ms·
The situation is simple and tragic. Rather than implementing an honest tax, so that they can pay off foreign debt, the government fixes the exchange rate so th
by yetanotherphd 13y ago
The situation is simple and tragic.
Rather than implementing an honest tax, so that they can pay off foreign debt, the government fixes the exchange rate so that it can pay of its debt for cheaper. However doing so is effectively a hugely distortionary tax on its own citizens.