Jon Danielsson welcomes plans to lift capital controls in Iceland imposed after the financial crisis.
While the capital controls helped stabilise Iceland's banking system, they have deterred new investments and increased the cost for companies to borrow money.
Jon Danielsson comments: "A country needs to be able to have a currency without capital controls to be taken seriously, and it’s a precondition to get investments.” He notes that the plan "puts the interests of the economy first while being fair to foreign creditors.”
See further reports in Financial Times and New York Times.
Read Jon Danielsson's VoxEU posts on Iceland's capital controls:
Capital controls are exactly wrong for Iceland (2011)
Iceland’s post-Crisis economy: A myth or a miracle? (2013)
