Putin Seeks To Slap Curbs On Inflow of 'Hot Money'

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Source: WSJ

MOSCOW—Russia will adjust regulations to limit the inflow of "hot money" into the country while encouraging long-term investments, Prime Minister Vladimir Putin said Tuesday.

The comments are a departure from previous statements from top officials and represent the first time that Mr. Putin has mentioned changing the rules on capital accounts, which were liberalized in 2006 to encourage foreign investment.

"We now have conditions that attract inflows of speculative capital. We have to change the rules in order to make the country less attractive to speculators," Mr. Putin said in Vladivostok.

Mr. Putin didn't say what form the measures would take, only that they will be gradual. "We don't plan on doing anything that will shake up the markets," he said. A gradual transition to a free-floating ruble will also help fight speculative capital, Mr. Putin said.

Read more: http://online.wsj.com/article/SB20001424052748703510304574625463646381236.html

[Hydra]

1. Amazing what you can do when you're in a good position

I wonder why we aren't working toward that with green energy and pollution cleanup.

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2. I thought that it was interesting that he understands, at least theoretically,

that running your economy like it was a giant casino is a recipe for disaster, and that he was in a position - as you noted - to say so out loud.

[Vidar]

3. Putin's a lot brighter than our politicians on this one.