Capital controls in emerging markets ineffective in curbing inflow surges.
Capital controls in Brazil, Colombia, Korea, and Thailand during the 2000s aimed to manage sudden inflows of money. These controls did reduce inflows and made them last longer, but not always significantly. The effects were temporary and didn't always prevent currency appreciation. The success of capital controls depended on how extensive they were, the country's capital market development, other supporting policies, and the persistence of capital flows.