What problem might result from reinstituting capital control

Reference no: EM131022889

The global financial crisis of 2007-2009 led some economists and policymakers to suggest the reinstitution of capital controls-or limits on the flow of foreign exchange and financial investments across countries-which existed in many European countries prior to the 1960s. Why would a financial crisis lead to a reconsideration of using capital controls? What problems might result from reinstituting capital controls?

Reference no: EM131022889

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