Capital controls essential for small open economies, Guðmundsson says
Some form of capital controls 'here to stay', governor says
Central Bank of Iceland governor Már Guðmundsson said small open economies must be willing to use capital controls – albeit with great caution – if they are to enjoy independent monetary policy, during a speech in London today (January 28).
Iceland defended itself with capital controls during the 2008 financial crisis, and the policy helped shield the economy from a worse economic collapse, Guðmundsson said. Indeed the IMF, long an opponent of capital controls, now takes a more accommodating
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