Particular countries such as Malaysia are clamping on exchange controls, free trade economists such as Paul Krugman are suggesting currency controls as a least bad option, a good many others are recommending distortionary taxes on some capital flows, and almost everybody is at least re-examining their preconceptions. But before this process goes too far, I would like to enter a contrary plea.
TILTING THE POLICY MIX IN THE EURO AREA Keynote Speech by Klaas Knot, Finanzmarktklausur Wirtschaftsrat, Berlin Thursday 26 January 2017  Ladies and Gentlemen, Thank you for inviting me to speak at this event of your Wirtschaftsrat. I would like to give you a central banker’s perspective on the appropriate policy mix in the euro area.