Capital Controls
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Capital control
Capital control is the
monetary policy
device that a country's government (i.e. sovereign power) uses to regulate the flow of
investment
-oriented money into and out of a country or
currency
. The decade since the
Asian Currency Crisis
in 1997-1998 has rekindled debate over the wisdom of developing markets having capital controls. Originally, as the march of
globalization
began to really get underway with the formalization of the
World Trade Organization
and the
Uruguay Round
of
General Agreement on Tariffs and Trade
(
GATT
), it was thought and in fact urged by the
International Monetary Fund
and others, that developing countries needed to liberalize their
capital
controlled environments and embrace the free flow of capital coursing throughout the global
economy
.
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Wikipedia
®
and is licensed under the
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UNODC Money Laundering Terms Dictionary
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Capital Controls
Government restrictions on the acquisition of foreign assets or foreign liabilities by domestic citizens, or the acquisition of domestic assets or domestic liabilities by foreigners.
Copyright © 2005 UNODC -
United Nations Office on Drugs and Crime
.
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