To sum up, the first and second schools of thought which were dominant till recently have now been supplemented, or perhaps supplanted, by the third and fourth schools. Further, in the second school, there is recognition of difference now between equity and debt flows in the context of downside risks.
The third school focuses on the importance of proper sequencing of liberalisation of capital account with other policies. The fourth school elaborates on issues relating to management of capital account and takes a more nuanced approach to it.