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Are we entering another era of financial repression?. The growing demand for Offshore Financial Centres. Rationale. The incentives to reduce public debt are more compelling today than at any time in the last 100 years. What does financial repression look like?.
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Are we entering another era of financial repression? The growing demand for Offshore Financial Centres
Rationale • The incentives to reduce public debt are more compelling today than at any time in the last 100 years
What does financial repression look like? • Ceilings on interest rates
What does financial repression look like? • Ceilings on interest rates • Exchange controls
What does financial repression look like? • Ceilings on interest rates • Exchange controls • Overseas investment tax
What does financial repression look like? • Ceilings on interest rates • Exchange controls • Overseas investment tax • Restricted ownership
What does financial repression look like? • Ceilings on interest rates • Exchange controls • Overseas investment tax • Restricted ownership • Prudential regulation
Predictions • Low interest rates → ↓Government interest expenses • Low interest rates → ↑Demand for equities • Low interest rates → ↑Redistribution
Predictions • Financial repression → capital & wealth looking for lightly regulated jurisdictions