This meant we could draw on their experiences to design a framework better suited to South African conditions, rather than trying to invent something from scratch. What we came up with was in many ways the mirror image of the old framework.
The major benefit of the third solution as seen at the time – and as emphasized particularly by my then-colleague Michael Deppler of the IMF – was that a country that adopted that solution would  1  Among these reasons is that capital controls tend to: cut the development of the financial sector of the country off from the global economy; cut the economy off from the benefits of international trade in assets; and are frequently ineffective and a source of corruption.