It is left to the choice of individual households and their belief and faith. 4. Be that as it may, world view on capital flows and capital controls has swung in both directions since the days of Bretton Woods. In the 1940s, while Keynes and White, the architects of Bretton Woods, favoured capital controls, there were others who had opposite views.
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.