To manage capital flows, EMEs don’t have easy options. It is possible, although not terribly efficient, to cherry pick the type of flows. Capital controls can be gamed or circumvented. Also stop-go policies send wrong signals to potential investors. Despite all this, different EMEs have tried, and will continue to try out, capital controls of both price and quantity varieties.
Financial services such as savings products, credit and loans, payment and money transfer services, insurance, and many others, provide poor people with greater capacity to stabilise and even increase their incomes, build assets and cope with shocks. These financial products have proven to be great tools that mitigate the effects of low, irregular and unreliable incomes which keep many people below the poverty line.