Capital Controls - When and How to rein in capital flows

What are Capital controls 
Capital Controls restrict the free movement of capital. Countries use these controls to restrict volatile movements of capital entering (inflows) and exiting (outflows) their country.

Capital Controls and Capital Inflows

Capital Controls -
Foreign capital inflows in the form of loans and equity that are allowed in a restricted form are said to be controlled. Many countries which had closed economies had imposed severe restrictions on foreign capital. However, as these economies started opening up in the 80s, capital controls were eased, facilitating free flow of capital and ensuring integration with global financial markets.