restrictions on capital movements

The gold standard works on the assumption that there are no restrictions on capital movements or export of gold by private citizens across countries.

In accordance with Article 56 of the EC Treaty all restrictions on capital movements between Member States, be they discriminatory or non-discriminatory, are prohibited.

The large flow of investment prior to the crisis was the product of stringent macroeconomic and budgetary policy and the elimination of restrictions on capital movements in 2006, he said.

"He's scarcely got into the car yet," retorted the Prime Minister, who said that unlike Britain, France had not yet abolished foreign exchange controls or eliminated restrictions on capital movements.

This states that, in the absence of transaction costs and restrictions on capital movements, real rates of interest will be equal in all countries; arbitrage will ensure that this is the case.

France has led the campaign for a community-wide withholding tax because it fears that with France's 45 percent tax on savings income and 25 percent tax on dividends, French citizens would move their money abroad when the community lifts restrictions on capital movements on July 1, 1990.

Also on July 1 all restrictions on capital movements between most EC member countries were lifted, as envisaged in Directive 88/361 of June 1988, although a derogation for four newer member countries (Greece, Ireland, Portugal and Spain) gave them until the end of 1992 to comply.