Capital Blockade

  

Ever heard the talking heads on news say "economic sanctions?" If so, this is what they mean. If not, this is still what they mean.

More than a slap on the wrist, but short of declaring a war, countries use capital blockades to penalize other countries who are being naughty (like, say, invading Crimea...or detonating nukes...or sponsoring terrorism...you know, naughty). By freezing assets, forbidding investment, or otherwise limiting/restricting capital from flowing into offending nations' economies, the hope is that the target of the capital blockade will act right in order to avoid fiscal pain.

Find other enlightening terms in Shmoop Finance Genius Bar(f)