Monday, December 1, 2008

Yang should be happy he doens't live in Latvia

Economist was arrested for having too pessimistic view of the Latvian economy. And you thought banning short selling was bad.
Finance is a highly touchy subject in Latvia, one that the state tries, with unusual zeal, to shield from loose tongues. It is a criminal offense here to spread "untrue data or information" about the country's financial system. Undermining it is outlawed as subversion....

....authorities also have cause to be wary of unfounded gossip. Latvia last year was suddenly awash with rumors of an imminent devaluation of the lat, which is pegged to the euro. Citizens, ignoring government reassurances, rushed to convert their cash into euros. The central bank spent heavily to sustain the currency peg. There was no devaluation.
Suspecting foul play, the Security Police launched a hunt for the source of the devaluation talk. It eventually found the culprit but quickly let him go. "He was in a drunk condition when he spread the rumor," says the Security Police's Ms. Apse-Krumina.

1 comment:

Yang said...

Moral of the story: do not feed alcohol to ecnomists