Cyprus is to become the first eurozone country ever to apply capital controls \u2014 with limits on credit card transactions, daily withdrawals, money transfers abroad and the cashing of cheques \u2014 intended to prevent a vast outflow of euros when its banks open on Thursday.\u00a0Under drastic measures that some analysts say are incompatible with monetary union, depositors would be able to withdraw no more than \u00e2\u201a\u00ac300 in cash each day, said people familiar with the move. Transfers over \u00e2\u201a\u00ac5,000 would require permission of the central bank.<\/p><\/blockquote>\n
These are draconian measures, clearly intended to stop a run on Cypriot banks, I am certain they will be relaxed over time. That, however, does not reduce the significance of the fact they have been\u00a0imposed\u00a0at all. After 30 or more years of capital market liberalisation, beginning with Reagan and Thatcher the evidence that the markets have failed and tha\u00a0free roaming capital can by\u00a0itself\u00a0threaten the market system and even bring it down is now clear.<\/p>\n
A new era has arrived. I cannot see capital controls, now they're back in the\u00a0armoury,\u00a0going away again.<\/p>\n","protected":false},"excerpt":{"rendered":"
As the FT notes in an email this morning: Cyprus is to become the first eurozone country ever to apply capital controls \u2014 with limits
Read the full article…<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-19862","post","type-post","status-publish","format-standard","hentry","category-economics"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/19862","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=19862"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/19862\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=19862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=19862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=19862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}