The recent IMF update on the World Economy Outlook states that “Recognizing that inflows can be very large and partly transitory, depending on circumstances, macro-prudential policies aimed at limiting the emergence of new asset price bubbles, some build-up of reserves, and some capital controls on inflows can be part of the appropriate response.” Completing the markets in India I. Corporate bond market  20.
Each time, society convinces itself that the current boom, unlike the many booms that preceded catastrophic collapses in the past, is built on sound fundamentals, structural reforms, technological innovation, and good policy”. [unquote] 19. Having said that, we must remember that not all financial liberalization is bad; the world has benefitted from financial innovation and liberalization.