The Impossible trinity also known as the Trilemma is a trilemma in international economics which states that it is impossible to have all three of the following at the same time A stable foreign exchange rate Free capital movement absence of capital controls An independent monetary policy I may misunderstand Icelanders do not have Free capital movement of course some movement some is necessary I m not sure how much is more really needed for Icelanders mostly or do only foreigners loose It seems that it may be ok one of the options You are saying Icelanders should use the Euro drop An independent monetary policy and have stable foreign exchange rate meaning the Krona linked to the Euro as with the Danish Krona or just adopt the Euro On the long term the currency controls hamper Icelandic economic growth as they block any renewed foreign investment capital to enter Iceland Still an ongoing Chinese smaller scale aluminium plant is going to be built in Iceland Are we immune to a Black Wednesday I e is that what happened in the UK they tried to have all three Could someone like Soros come and do that to Iceland with capital controls If those stop that is it worth it loosing the controls and could they be kept for all eternity Didn t doesn t China have capital controls And fix to the US dollar while not any more