Re: population sizes for colonising a planet

In article <dj4edu$56e$1@xxxxxxxxxxxxxxxx>,
phoenix@xxxxxxx (Damien Sullivan) wrote:

> David Friedman <ddfr@xxxxxxxxxxxxxxxxxxxxxxxxx> wrote:
>
> >> >But not government central planning that actually controlled where
> >> >investment went and not, I think, exchange controls.
> >>
> >> Exchange controls? Like China's pegged currency?
> >
> >With a pegged currency, the government buys and sells the currency as
> >needed to keep the exchange rate at the level it sets--like the U.S.
> >government buying grain to hold the price at the parity level.
> >
> >With exchange controls, it is illegal to exchange the currency for
> >foreign currency except through the government, with government
> >permission, at the official rate. Like rent control.
>
> a) What's the practical difference?

A pegged exchange rate doesn't control who gets foreign exchange and how
it is used. Exchange controls do.

> b) Googling suggests that China has had both pegging and controls, and
> recently dropped official pegging to the dollar but still had tight controls,
> and regulation of exporting capital.

They don't, so far as I know, require anyone who exports goods to turn
the resulting foreign exchange over to the government at the official
rate, to be in turn allocated at that rate to whomever the government
thinks can best use it.

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