Sunday, November 27, 2016

Castro's "Monetary Policy"

From George Borjas:
In the days before credit cards and electronic transfers, all transactions were made in cash. Castro quickly found a simple way of confiscating "excess" cash. The currency was changed overnight. And everyone had to turn in their old paper currency for the new paper currency, with some limits being imposed on the amount of the transactions. There was a miles-long line on what I think was a Saturday morning, as the entire Cuban population was turned into beggars for the new currency.
(via David Henderson)

1 comment:

  1. This reminds me of the actions taken by Narenda Modi in India. That man apparently hates the counterfeit money issued by the Indian Govt.

    India is the new Cuba?