Before trying to answer these inherently difficult questions, it is worth looking back to the evolution of the current financial crisis in the United States and Europe, and of that in Japan two decades ago.
BIS central bankers’ speeches  Capital controls Emerging markets are starting to take a more favourable view of the costs and benefits of capital controls, especially controls on short term portfolio capital flows, as a tool for both macroeconomic management and financial stability. This is for two reasons.