Economics

Capital Control

Capital Control

Cash Control means any measure taken with a government or different regulatory body to restrict the flow of overseas capital in and from the domestic economy. This involves taxes, tariffs, outright legal guidelines and volume restrictions, in addition to market-based forces. Capital control could affect many asset classes including equities, bonds and exchange trades. Tight capital controls are generally found in developing economic climates, where the capital reserves are lower plus more susceptible to volatility.