Capital controls make a mockery of the Eurozone

The European commissioner for Internal Market and Services, Michel Barnier, has announced that limits on movement of capital in Cyprus may last only a few days. Pundits are now worried that these could last for months.

Allister Heath on the consequences of capital controls:

Imagine if one couldn’t move money from London to Birmingham, and that there were therefore for all intents and purposes a series of regional pounds: sterling would no longer be a unified currency. Similarly, a Cypriot euro would no longer be a proper, fully-fledged euro, regardless of what the Eurocrats would like the rest of us to believe, at least for as long as these capital controls remain – and like all bad, oppressive laws, they will have a tendency to live on forever.

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