Repatriation effect of infrequent withdrawals

If foreign investors lose confidence in the reliability of economic policy in the investor country, the sums invested there are withdrawn. As a rule, this aggravates the difficulties in the country concerned and can have far-reaching consequences, even leading to national bankruptcy. Iceland, the Baltic states and Eastern European countries such as Hungary and Romania were particularly hard hit at the end of 2008. Iceland had to be protected from national bankruptcy by the International Monetary Fund. – The repatriation of large sums of money from the Eastern European states was widely criticized. Almost always, however, the cause was not mentioned, namely bad economic policy in the host country, double-digit deficits in the balance of payments, excessive public debt, worsening conditions for foreign investors, rampant corruption and deep-rooted sloppiness in the state sector. – See Icelandic Bank Trap.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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https://www.jung-stilling-gesellschaft.de/merk/
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