Professor Krugman writes today in the NYT about currency problems in Turkey. I remember in the early 80s when Mexico went through a crippling devaluation. My dreams were dampened; I had to go to Boston with only a fraction of the money I needed to stay at MIT for a post-doctoral visit. My visit was cut short, and eventually I had to leave Mexico for family reasons, not so much unrelated to the economic meltdown of Mexico which started then.
As Krugman explains, open borders are good to put your money wherever you want, but has the consequence of leaving in the hands of foreign investors, the decision of what is good for each country. How much did investors, who pulled out of Mexico, know about my work in Theoretical Physics at MIT, and how much did they care? You guessed it; not at all. All they cared about was, where their investment would have the best profit; according to their best judgement.
The world has entered a globalization stage based on capitalistic principles.
Are we going in the right direction?
You make your mind.