This paper examines the Chilean experience with capital controls and reviews studies on controls on capital inflows. Controls on Chile`s inflows had only a temporary impact in reducing specific inflows because they were affected by avoidance. There is some evidence that controls increased...

This paper examines the Chilean experience with capital controls and reviews studies on controls on capital inflows. Controls on Chile’s inflows had only a temporary impact in reducing specific inflows because they were affected by avoidance. There is some evidence that controls increased...