News for hackers. Stuff that matters.
Re:Economist Bob Mundell has died by pydry on Tuesday April 06, 2021 @01:35PM (#26714883)
Capital controls are controls what kind of capital can enter and exit the country and when - e.g. transaction taxes or exchange controls (limiting how much currency you can buy or sell).

Currency pegs are when the government tries to maintain a particular value against another currency. E.g. maintaining a $ peg by buying or selling US treasuries on the open market.

They are not the same thing at all.

Currency pegs should probably additionally be separated into two groups, as, well - "too high" (UK and Thailand) and "too low" (China).

The crisis could be characterized as an attempt to adhere to the impossible trinity: https://en.wikipedia.org/wiki/Impossible_trinity

Re:Economist Bob Mundell has died by jariel on Tuesday April 06, 2021 @01:41PM (#26714953)
When the government is buying and selling currency at some rate commensurate with capital coming in and out of the country -> it's a capital control.
Re:Economist Bob Mundell has died by pydry on Tuesday April 06, 2021 @01:54PM (#26715124)
Reacting to capital leaving the country uncontrolled is not a capital control.

It's a reaction to capital leaving the country uncontrolled.

Fixed exchange rate regimen != capital controls.