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The only reliable options are to either introduce capital controls or let the currency find its own level".
The government was forced to introduce capital controls and suspend gold payments, in effect unpegging its currency.
Willem Buiter, a prominent economist, believes it is only a matter of time before some of the ex-communist countries introduce capital controls.
"If there is another systemic crisis it should force some more radical ideas – really break them up, introduce capital controls," he said.
Iceland The island became an emblem of the 2008 crisis when the failure of its bloated banking system forced it to introduce capital controls.
THERE WAS one big surprise in the Autumn Statement: "…from April 2015, we will introduce capital gains tax on future gains made by non residents who sell residential property here in the UK".
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Iceland introduced capital controls in 2008 and still has them in place.
Telefonica, a Spanish firm, and Procter & Gamble (P&G), together have billions of dollars trapped in Venezuela, which has introduced capital controls.
Brazil battled back by introducing capital controls in the form of taxes on foreign purchases of Brazilian securities, but the currency remains overvalued.
During his annual press conference on Thursday, the Russian president appeared to rule out drastic measures such as introducing capital controls or reshuffling the government.
Iceland introduced capital controls in the wake of its financial crisis, imposing a limit on foreign-exchange transactions of 350,000 kronur (about $3,000) for residents planning to travel abroad.
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