Control on short term capital flows tend to affect the composition of inflows between short term and long term capital

Nouriel Roubini :"This is one of the options that countries are increasingly considering and applying. Brazil and Korea have done so. If inflows of capital becomes excessive and this leads to excessive appreciation, one could impose controls on short term capital inflows. The evidence, however, shows that control on short term capital flows tend to affect the composition of inflows between short term and long term capital.They don't tend to affect very much overall volume of inflows. So, if you are concerned about hot money, it is effective. But if your concern is about inflows appreciating your currency, those controls are not affecting the overall volume of flows. " in an interview with ET Now