If not, those investors who stay behind are hurt, which is what creates run incentives. And, if the run incentives are strong enough, then a credit-oriented bond fund starts looking pretty bank-like.
Until recently, the wisdom of “Washington Consensus” favoured capital account liberalisation and free capital flows. The Asian Crisis put the idea of full capital account liberalisation on the back burner. Further, the recent crisis of 2008 has also led to a rethinking on the issue of capital flows.