they ask it of nations that are in accordance with their criteria.
At that time what will they say? They will say this to you: Your country is very good so that you need to open the market. You'll receive money therefore the interest rates in your country will be lowered. The economy will thrive. Some portion will go into the stock market. Stock prices will go up. Everybody can enjoy recruiting. When you think over the necessity of doing or not doing so under the current situation, recall that this way of thinking is appropriate for globalization, deregulation, or opening. To conclude, I think Japan has been very timid in this regard for a long time.
｡?PAKKASEM
I read lots on George Soros, tons Of documents about him and even his investigation in the Congress. First of all, he was a Hungarian refugee in the United Kingdom from'49 to '56. He was a refugee in England. He worked for the greyhound dog-racing club and loves gambling right from the beginning. The company called Astra which is the brokerage house in London. And then he got an immigration visa for the U.S. and he went to the U.S. in '56, working on Wall Street. The man is smart, controversial and contradictory. He is, I would call, a typical member of the House of Rothchild, the European House of Rothchild. Do you know the implication of a House of Rothchild? He only wants to say what you would like to hear. What he recommends is contradictory to what he is doing today. Would you believe him? He is very smart and very shrewd.
So whatever he may offer could seem like an answer to a prayer or something from a saint. But I wouldn't believe him until I see the clear structure. If he passes on a quick one, I wouldn't take it seriously.
｡?LEE, Jong won
Professor, Faculty of Law, Rikkyo University
Indeed I understand from the political point of view the necessity of regulation or control against short-term or speculative investment. However, I wonder if that regulation can be implemented on the national level, in the regionally closed form, or if it must develop in connection with a certain Asian stable currency zone, or if it needs a certain global system. Probably it is likely that each company protects itself at the national level. I think there will be various levels of protection mechanisms, nonetheless I wonder if these mechanisms should connect to Asia that is Our present concern, Or to nationalization which is the result of anti-globalization, or to the closed form within the region. I'd like to ask if it means the necessary consequences from the economy's technical perspective.
｡?Tamotsu AOKI
Professor, Advanced Technologies Research Center, University of Tokyo
It is a very simple question but I'd like to ask this question of the currency professional. If we look at Asian currencies, we see a floating exchange rate system such as Japan's foreign exchange between the yen and the dollar or the other foreign currencies. The second One is the peg system such as Hong Kong dollar. Another one is the controlled fixed exchange rate system such as the Chinese one, which is rather socialist and does not participate in the international floating currencies. For example, in the case of Dr. Yamano's Chinese project which is an attractive electric irrigation system, I wonder if it is easier to trade with the Chinese people under the fixed exchange rate system rather than under the speculative currency system like a global hedge fund.
I'm going to Hong Kong next week and l think Hong Kong dollar is too strong. Once it is freed from the peg system, it would become much easier. I'm concerned about the future development of the three currency systems.
Another issue is the yen circle with which the United States collapsed immediately after the comments of Mr. Sakakibara.
I'd like to ask whether it will still be possible or not in the future and where its advantages lay.
｡?SHINOHARA
To impose a regulation on short-term capital, should it be done on a national basis or on a reasonable basis in terms of technical theory? I will explain this.
To do it simply, it can be imposed on a national basis, Establish a management law or a regulation for emergency.
To establish such a regulation as a financial policy or a macro policy, in that sense, it can be decided by a nation, on a national basis. But if you try to establish an unified regulation, because you do not want this kind of fund or this kind of movement to come to your region, then it is applied science and I guess it is a very difficult problem to think about. I think we have to discuss this problem more in future.
Talking about peg or float, Asian currencies had been pegged.
Thai currency was pegged to the US dollar for 10 years. In a long run the US dollar was devalued for the past 10 years in a stable manner. Then Thai currency was also devalued quietly. Therefore exporting power itself was replenished each time, resulting in successful economic growth based on good export performance. The point is the situation has changed due to the dollar's solitary strength for the past two
