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Capital Controls: Gates and Walls Michael W. Klein, Fletcher School, Tufts University, N.B.E.R. and Brookings Institution Conference presented at the Fall 2012 Brookings Panel on Economic Activity
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Capital controls gates are regulatory measures imposed by a government to restrict the flow of capital in and out of a country. They are typically used to maintain stability in a country's financial system and manage the exchange rate. Capital controls gates can include restrictions on foreign investments, limits on currency conversions, and regulations on the movement of funds across borders.
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The purpose of capital controls gates is to regulate and monitor the flow of capital in and out of a country. They are implemented to control the exchange rate, prevent the depletion of foreign currency reserves, and safeguard the stability of the domestic financial system. Capital controls gates can also be used to manage risks associated with capital flight, currency speculation, and economic vulnerabilities.
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