Reduced demand from all the layoffs will only be exacerbated by the capital controls.
Russia has no capital controls, so when investors are jittery, capital flies out of Russia.
As industrial countries have removed their capital controls, this is exactly what has happened.
In a year's time, fund managers will have forgiven and forgotten the capital controls saga.
Some have tried capital controls instead but it is not clear such measures are effective.
The distortions and costs associated with capital controls are rising as emerging economies become more globalised.
The currency war appears to be escalating with even greater currency depreciation, trade restriction, and capital controls.
You needed capital controls, so people could not easily move their money from one country to another.
In a fast-globalising world even countries with strict capital controls saw an increase in actual capital flows.
Trying to use capital controls to slow the tide, the IMF said, would do more harm than good.
Now, the official IMF position is that countries can impose certain kinds of capital controls, in certain circumstances.
If Malaysia can stabilize its currency and kick-start its economy, why should the IMF oppose its capital controls?
Capital controls and even travel restrictions would be needed to stanch the bleeding of money from the economy.
The Shanghai and Shenzhen exchanges still form a world apart, separated from Hong Kong by strict capital controls.
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Had the capital controls been imposed at an early stage in the crisis, Malaysia would now be struggling.
What is your reaction to the growing acceptance in Asia of capital controls and other forms of interventions?
Since he ring-fenced the currency, the ringgit, with capital controls in September last year, the economy has recovered.
Some people thought he might have a plan to introduce some sort of capital controls, as Malaysia did.
Since they will be in a foreign currency, the issue will not be affected by Malaysia's capital controls.
But the main feast of China's financial assets is onshore and off-limits, thanks to its strict capital controls.
Larger trade flows make it easier for firms to evade capital controls, by over- or under-invoicing their transactions.
That would result in capital controls and perhaps limits on bank withdrawals, which in turn would strangle commerce.
These practical difficulties, let alone the dangerous side-effects, have received little attention in the renewed debate over capital controls.
Finance Minister Michalis Sarris said he expects a decree implementing these capital controls to be ready by midday Wednesday.
Indeed the distinction between capital controls and sensible bank regulation can become blurred.
Some economists argue that those countries should learn from Chile's open market economy, tight banking supervision and capital controls.
At this point capital controls would need to be in place to ensure money in the country stays there.
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There are still obstacles, however, to the growth of the market: not least India's capital controls and stockmarket regulations.
IMF's boss, Michel Camdessus, wants member countries to give him a mandate to oversee the removal of capital controls.
This was partly due to investor caution and partly due to capital controls.
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