Just as “real men don’t eat quiche”, real countries don’t resort to capital controls. If such short-term capital controls are a legitimate instrument of policy, we need to define more clearly the circumstances, and be readier to endorse their use in these conditions.
The alternative to implementing these ideas is inaction – either in the hope that these problems will go away or because of some ideological position based on the preservation of market purity. This risks losing the very real benefits of capital flows, if it leads to ill-designed measures by emerging countries to isolate themselves from these problems.