Capital controls and sterilized intervention policies influence the types of capital flows countries receive, not just the amount. In the 1990s, Asia relied heavily on Foreign Direct Investment (FDI) while Latin America attracted more short-term and portfolio investments. However, as capital inflows continued, Asia became increasingly vulnerable to short-term capital fluctuations. The policies implemented by countries affected both the volume and composition of capital flows, with Asia shifting towards more short-term investments due to macroeconomic responses to initial inflows.