12 Countries that undertake textbook policies of financial sector liberalization are not immune to the inflows – indeed,  7  Stein, Jeremy. 2012. Monetary Policy as Financial-Stability Regulation. Quarterly Journal of Economics 127, no. 1: 57–95. 8  See Diamond and Rajan (2012), Farhi and Tirole (2012) and Acharya, Pagano and Volpin (2013).
The problem is exacerbated if unemployment is driven by factors that move to a different cycle and pace than the financial cycle. 9  See Feroli , Kashyap, Schoenholtz, and Shin (2014) for details. 10  See Stein (2013). 11  See Bruno and Shin (2014 a, b), Calvo, Leiderman, and Reinhart (1996), Obstfeld (2012), Rey (2013), and Schularick and Taylor (2012) for example.