THE EDITOR, Sir:
WITH THE precipitous slide of the Jamaican dollar, the Government has once again applied the cudgel of high interest rates in a desperate measure to arrest its slide. The explanation from the Government is that speculation against the dollar has got to be contained.
We have been hearing this kind of language for well over a decade. But what the Government has not understood is that what they define as speculation is something that is intrinsic to a market psychology which operates in the economy whenever there is volatility in the currency. What they define as speculation is no more than a response by the astute investor to what he sees as a "targeted opportunity."
If the opportunity did not exist he would see no need to take advantage of a situation when it is placed in his lap.
What the government should be concerned about is to create the conditions that will lessen the need for 'speculation'. High draconian interest rates which are essentially stopgap measures, are hardly the way to go.
I am etc.,
Rev. RALSTON NEMBHARD.
E-mail: stead6655@aol.com
Via Go-Jamaica
