The jury is still out on whether such controls might be appropriate for other economies. It seems clear that their principal attraction is as a short-term measure that helps an economy make a full transition to a fully open capital market. A second question is whether fixed or more flexible exchange rate regimes are more appropriate in an era of rapid capital mobility.
Capital requirement rules under Basel II, for example, are supposed to be procyclical owing to accelerating capital requirements in case of rising borrower’s default risk. To the extent that banks change their lending behaviour in reaction to this, economic cycles can be amplified.