AS per OECD latest report, the risks posed by growing capital flows call for a coordinated package of macroeconomic, prudential and structural policies, with capital controls only to be considered as a last resort.

Getting the Most Out of International Capital Flows encourages countries to take advantage of new opportunities for long-term income growth stemming from increased capital flows. But the report also recognizes that global financial integration can also leave economies more vulnerable to risks at both the national and global level.

The OECD recognizes growing international discussion about the use of capital controls but warns that their efficiency is still unclear and the mechanisms can create distortions if maintained indefinitely.

The OECD suggests that their use be subject to multilateral surveillance like the OECD Code of Liberalisation of Capital Movements, which form a legally binding set of rules providing countries a framework for progressive, non-discriminatory liberalisation of capital movements while allowing flexibility to cope with economic and financial instability.