Capital controls in Asia stabilize economies and boost monetary independence.
The article looks at how capital account policies in ten Asian countries from 2000 to 2015 affect capital flows, exchange rates, and monetary policy. Some types of controls can reduce capital flow and exchange rate pressure. The choice of exchange rate regime affects how well controls work for monetary policy. Strong economic basics are more important than capital policies for changing the type of capital inflows. It's important to be careful when implementing capital controls because they can interact in complex ways.