This paper examines capital controls in two ways. First, it assesses whether capital controls have an economic justification within the context of an economyâ  s and, in particular, its financial sectorâ  s stage of development. It concludes that capital controls can be justified...

Since March 1973 virtually all major currencies or currency blocs have been floating. As a result - so it seemed - controls over international capital movements would become less important. But any hopes for a lasting liberalization of capital movements at flexible rates of exchange must be kept...