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| SHOPPER'S DELIGHT | |
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This fall is particularly damaging when the capital belongs to the people of the affected country, because not only are the citizens now burdened by the loss of faith in the economy and devaluation of their currency, but probably also their assets have lost much of their Nominal value. This leads to dramatic decreases in the Purchasing Power of the country's assets and makes it increasingly expensive to Import goods. In 1995 , the International Monetary Fund (IMF) estimated that capital flight amounted to roughly half of the outstanding foreign debt of the most heavily indebted countries of the world. Capital flight was seen in some Asia n and Latin America n markets in the 1990s . The Argentine Economic Crisis of 2001 was in part the result of massive capital flight, induced by fears that Argentina would Default on its External Debt (the situation was made worse by the fact that Argentina has an artificially low fixed Exchange Rate and was dependent on large levels of Reserve Currency ). This was also seen in Venezuela in the early 1980's with one year's total export income leaving through illegal capital flight. SEE ALSO
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