The Impact of Cross-Border Capital Flaws

With hindsight the pattern of all these crises look remarkably similar. Their cause is not so much floating exchange rate regimes per se but the destructive effect of rapidly shifting cross-border capital flows. If we ever get round to building a new monetary system do you think the free movement of capital will be as large as this $130 trillion total of capital too big for democracies? I think this is the sort of $64,000 question. The answer is probably yes.