More paradise lost

[kissoflife]

Wow, the Seychelles islands are bankrupt. Like Iceland. The Seychelles is 'the most indebted country in the world,' now

Comments

[r_ness]

Yeah, they had pegged their exchange rate at a stupidly high rate, and then ended up with all kinds of exchange controls in order to defend that absurd rate, which they managed to get away with until the financial crisis. Then, all the money they borrowed in order to keep everything afloat came due, and the tourists stopped coming because tourists ran out of money, too.

It's a pretty place, and I intend to get there someday, but their government really fucked up.

[kissoflife]

As I've said to you, based on my grad classes, actually managing macro-economics is scarily unsure. Oh, the endless "Well, it was supposed to do x" rueful stories. Those were the most numbing "Gah, we did the simple, _recommended_ thing- how come it's not being simple!!?" classes I took.

[r_ness]

As I've said to you, based on my grad classes, actually managing macro-economics is scarily unsure.

True enough, but in this case the government was demonstrably corrupt and short-sighted, and drove the economy straight into a ditch.

There's a difference between making a mistake because your policies didn't do what you intended them to do, and doing things which you wanted to do regardless of the effect on the economy, and wrecking the economy in the process.

Anyway, they finally had to go to the IMF. We'll see how that works out.

[chocorua]

I don't think even lemmings exhibit the herd exuberance of humans heading for a cliff. And it's even beneficial for us, in the evolutionary sense, to follow a successful-looking crowd, so long as we pay enough attention to turn aside while we still can.