Capital control measures have been temporarily imposed in Cyprus since March 27, 2013, in light of the nation's dire financial circumstances, following nearly two weeks of bank 'holidays.' They came as the countrys government moved to enforce the controversial conditions of a 10-billion bank bailout from the eurozone and the International Monetary Fund.

Following massive capital flows on April 11 from banks to other financial institutions and depositors rushing to split up their accounts in order to avoid the forthcoming levies on large holdings, Cyprus mandated that only payments of up to 300,000 are allowed, and that bank transfers of that size are prohibited. Restrictions on cross-bank transfers have been imposed, limiting them to 2,000 for individuals and 10,000 for legal entities. Also, these transfers may now only be made once a month. Furthermore, the ministry stipulated that bank clients may not open new accounts in other financial institutions. Cross-border transfers are also prohibited, except for paying wages to employees of foreign companies and covering education costs. In addition, customers are only allowed to withdraw 300 a day from ATMs. Those going abroad can take only 2,000 in cash with them, and may only spend up to 5,000 abroad in debit card payments.

Please comment at least 300 words on the appropriateness and effectiveness of enforcing capital control restrictions, and on the possible consequences on the domestic and global economies. Explain your opinions and provide supporting evidence.