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April 3, 2008
Russia Moves to Limit Foreign Investment
Protectionism is alive and well in Russia too, as you can see in this article Russia Moves to Limit Foreign Investment.
Last year I wrote a paper for the International Finance Forum Journal likening protectionism to the turbulence that is created when fluid flows more rapidly through a cylinder. It is the result of increased velocity in the presence of friction. In the case of protectionism, it is faster global growth and faster capital flows in a world where it is costly for people to change jobs and careers. It is a side-effect of faster growth--a good thing. But we must find a way to manage it by reducing frictions via education, job training and relocation assistance.
JR
Posted by John Rutledge at April 3, 2008 2:20 AM
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