Finally, capital controls have global implications, as restricting financial openness can impede current account adjustment and thus hinder the world economy from reaching a more balanced equilibrium.
Indeed, as I have noted in an earlier speech, the current international monetary system is a mixture of economies, some with open capital accounts and flexible exchange rates, and others with managed exchange rates, more-restricted  7  See Edwards (1999) and Cowan and De Gregorio (2007) for a further discussion. 8  See Forbes (2007).