Origin Dictionary / OD-099
Capital Controls
The money is yours. Moving it abroad may still require permission.
01Dictionary Meaning
Capital controls are official measures that restrict, condition or raise the cost of cross-border capital transactions, such as investment or lending into or out of an economy.
02What People Think
"If I own the balance, I can move it wherever I choose."
03What’s Underneath
A government may require approval for certain overseas investments, limit specified transfers or apply charges to particular capital flows. Measures can affect incoming as well as outgoing money.
Authorities may use them to address volatile flows or financial pressures. The effect depends on design, enforcement and the surrounding conditions.
For an owner, the practical result is a distinction between holding an asset and being able to relocate its value. Domestic purchasing power and international mobility are separate financial capabilities.
04The Game
Which transaction is restricted, who must authorize it, and how does the restriction change what the asset's owner can do?
05One Line
Ownership and financial mobility are different permissions.
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M6Global Nodes & Geopolitical Finance
Follow how borders shape the movement of capital.
Library collection forthcoming. Explore the matrix and its Dictionary entries.
References 1
- Capital Controls in Times of Crisis - Do They Work?
International Monetary Fund