A temporary limitation on capital flows may help stop a financial crisis that has begun.

Question

Quizplus · Accepted Answer

Limiting capital flows can help prevent a financial crisis from spreading or worsening by reducing the outflow of investment capital and potentially stopping the rapid devaluation of a currency. This measure can give authorities time to address underlying economic issues and stabilize markets before re-opening capital flows.

A Temporary Limitation on Capital Flows May Help Stop a Financial