Capital controls- likely?

[shnaek]

Richie Boyd Barrett wants them, David Mc Williams thinks they are coming - what do posters here think?
Me - I think they are going to happen, and probably before this year is done.

 

[serotoninsid]

Richie Boyd Barrett wants them, David Mc Williams thinks they are coming - what do posters here think?
Me - I think they are going to happen, and probably before this year is done.

Forgive my ignorance (and I don't want to take away from your original query) - but can you outline exactly what is meant by 'capital controls' in the context you speak of?

 

[shnaek]

Forgive my ignorance (and I don't want to take away from your original query) - but can you outline exactly what is meant by 'capital controls' in the context you speak of?

Sure. Basically controls on peoples bank accounts and savings, allowing only a percentage of savings to be withdrawn. Money in bank accounts in Ireland locked in to those banks and money not being allowed to move abroad.

 

[kdoc]

That action would control the money already in the banks, but it would almost certainly not encourage further deposits. It might lead to an increase in the sale of safes.

 

[serotoninsid]

@shnaek: thanks for the clarification. Well, jim2007 outlined on another thread -something that I had not come across up until now. i.e. that it would be necessary for referendums and treaty changes before any member state could leave the euro. Therefore, IF they were going to approach this, then they would have to take a measure like what you mentioned???

Presumably, they could(would) only do this will all term deposit savings?

 

[Lightning]

it would be necessary for referendums and treaty changes before any member state could leave the euro.

That's a questionable assertion, at best. Not saying I agree but David McWillams, for example, thinks capital controls will be implemented swiftly and suddenly. Then again, it may never happen.