It kind of does because you can see the problems with capital controls in China. Foreign investment drops off because, hey, who is going to invest if they can

It kind of does because you can see the problems with capital controls in China. Foreign investment drops off because, hey, who is going to invest if they can take their money back out? It's also going to limit foreign investment outside the country. It also screws with exchange rates and interest rates because of the Interest Rate parity law: https://en.wikipedia.org/wiki/Interest_rate_parity https://en.wikipedia.org/wiki/Interest_rate_parity