The debate on capital controls was not pursued to a logical closure as the Asian economies recovered in quick order, regained their export competitiveness and started building up external reserves for self-insurance. 35. The recent crisis has, however, been a clear turning point in the worldview on capital controls.
Evidence coming in is that emerging economies which have been more open have been affected more than those which were less open demonstrating that premature opening hurts more than it helps. This has prompted a review of the earlier dominant view that capital controls are inadvisable – always and everywhere.