Key financial trends Before exploring some of these issues in a bit more depth, it seems useful to consider some of the longer-run trends that have set the backdrop for much of the work of central banks in international forums dealing with financial efficiency and stability.
That implies that effective controls also adversely affect desirable capital movements to some extent. And controls on capital movements may have the effect of retarding the strengthening of internal structures. Admittedly, in some cases and for specific areas, it may make sense to buy time for developing suitable domestic structures. But that time also has to be used. Otherwise, buying time might backfire.