3  Making the banking sector more efficient and resilient, OECD Economic Surveys: Russian Federation (2009). BIS central bankers’ speeches  3  must consider where the risks may lie in the future, for example by considering the impact of a financial slowdown in important emerging economies like Brazil or China.
Where does that leave policy makers? There is still a lot we do not know. It seems capital flow measures can help a country to deal with volatile capital flows and reduce the likelihood of a financial crisis. But of course one has to consider the costs and distortions. I think the Institutional View of the IMF has got it mostly right.