These purchases are intended to reduce intermediate- and longer-term interest rates on mortgages and other credit to households and businesses; those rates influence decisions about investments in long-lived assets like houses, consumer durable goods, and business capital. In ordinary circumstances, the typically quite modest volume of central bank purchases and sales of such assets has only small and temporary effects on their yields.
(iii)  When can prudential measures be substituted for capital controls? (iv)  What criteria should we adopt to choose between price based and quantity based controls? (v)  Are capital controls symmetric as between inflows and outflows? In other words, should we use one type of controls to control inflows and another type to limit outflows? III.