If a country has major distortions in its financial system, perhaps reflecting weaknesses in regulations, opening the economy to capital flows may just feed those distortions. To turn this 7  R. A. Mundell, “Capital Mobility and Stabilization Policy under Fixed and Flexible Exchange Rates,” The Canadian Journal of Economics and Political Science 29, no. 4 (1963): 475–485.
Fifth, we should not forget that monetary tightening in the eurozone will start in June, with the likely repayments of TLTROs. Finally, I want to reassure you once again that we will do “whatever it takes” to safeguard price stability. 2/2  BIS central bankers' speeches