In 1973, the United States of America, Germany, Canada, Switzerland and Holland and then, in 1979, Japan and England abolished the controls on their capital accounts. Thus, a financial liberalization movement emerged initially in the developed countries. Developing countries such as Turkey, Mexico, Argentina, Indonesia, Thailand, Malaysia joined the financial liberalization movement in 1980s hoping to raise external capital for the domestic investments. In the end, numerous countries discarded in the last forty years the regulations that could hinder the mobility of international capital. It is known that international organizations such as IMF and the World Bank had a consensus view on the need for increasing the mobility of international capital until recent past. However, from a theoretical standpoint, views for managing international capital flows always existed in the economics literature along with the views advocating perfect capital mobility. In the aftermath of the global financial collapse which hit the advanced economic centers such as the United States and the Euro Area in 2008, number of the advocates of perfect capital mobility - including the IMF and the World Bank decreased and the view that management of capital flows might result in better ends became the dominanting view. In this context, a similar intellectual tendency emerged in the European Union and some practices came into effect. This article summarizes the literature on capital movements along with various methods of capital controls and reviews the discussions and implementations within the European Union regarding the capital controls.