IV My next point: the liberalisation of capital movements. In principle, the fact that the free movement of capital contributes to the optimum allocation of resources is not open to question. But that must not imply liberalisation at all costs. One important conclusion from recent crises is that the focus on so-called “sequencing” has to be strengthened.
That means: further liberalisation only in those countries where the financial markets and, in particular, the banking system have a sound structure and are in a healthy condition. Knowing the risks, it would be irresponsible to take the second step before the first.