As the technology becomes more pervasive, and the benefits from accessing it expand, so too the costs associated with constraints on its use must grow. Moreover, it is difficult to limit international financial transactions when domestic financial transactions are being freed.
Given that the case for domestic capital market liberalisation is overwhelming, it follows that it will be increasingly difficult and costly to limit international financial transactions. •  Notwithstanding the manifest benefits of financial liberalisation, capital markets do not work perfectly; they are characterised by information asymmetries that give rise to sharp corrections and, in the worst case, financial crises.