But, in the short run, given the huge uncertainties involved in a regime switch, and the loss of access to capital markets that follows a debt renegotiation, foreign exchange becomes scarce, requiring a plethora of traditional restrictions – some more distorting than others – on capital movements.
But, in the short run, given the huge uncertainties involved in a regime switch, and the loss of access to capital markets that follows a debt renegotiation, foreign exchange becomes scarce, requiring a plethora of traditional restrictions – some more distorting than others – on capital movements.