Capital controls in Korea fail to stabilize economy, increase volatility.
Capital controls in the Republic of Korea were studied to see if they are effective. The researchers looked at the history of capital account policies and their impact on the economy. They found that while capital controls did not have a significant effect on capital flows, the economy was more stable when the capital account was restricted. Despite having a freely floating exchange rate, the Republic of Korea did not have full control over its monetary policy due to volatile capital flows.