"The freedom to take your money out of a country, and into another, at will and with no taxes, is an essential bulwark of a free society.
The free movement of capital helps maximise an economy’s efficiency by allowing capital to be allocated where it is the most needed, regardless of country, and where it can generate the best risk-adjusted returns.
It also helps discipline politicians: if they tax individuals too much, or debase the currency excessively (via inflation or by engineering an excessive depreciation) citizens can show what they think by voting with their feet, or at least via international bank transfers.
In Exit, Voice and Loyalty, the sociologist Albert O Hirschman pointed out that members of an organisation (such as a country) who are dissatisfied can either protest by using their voice (voting, demonstrating or arguing) or by exiting (removing themselves or their money). Eliminating the free movement of capital makes the second option unviable; even if the freedom of movement for people is maintained, many Cypriots will become prisoners in their own island, unable to leave without having also to abandon their savings and assets."