McKinnon and Pill (1995) provide an interesting account of the interaction between capital flows and financial sector weakness in recent Latin American experience.
This is by no means an outdated concept and is a lesson which I would like to stress considering the recent experiences of stock and housing market bubbles. And the track record? The ECB, together with the national central banks in the Eurosystem, has delivered. It is fair to say that the credibility test has been passed so far.