Instead, most hope that controls on short-term capital flows might make them less volatile.

ECONOMIST: Time to turn off the tap?

To prevent volatile currency swings, he argues, governments should impose a tax on short-term capital flows especially short-term bank loans.

ECONOMIST: Rise.Fall.Rise?

They have freed their exchange rates, avoided a dependence on short-term capital flows and steered clear of running up massive current-account deficits.

ECONOMIST: A health check for emerging markets

The reason seems to be that Chileans agree more with Mr Stiglitz: they worry about the turbulent impact of short-term capital flows even in their well managed economy.

ECONOMIST: Can capital controls stop poor countries crashing?

High on the list is the fact that American asset prices have been sustained by short-term flows of portfolio capital, just as in Asia.

ECONOMIST: As bad as it gets?

While China keeps tight control on flows of capital in and out of the economy, short-term speculative investments often take place under the radar, and the central bank typically soaks up extra cash by using so-called liquidity operations.

WSJ: Investors Seek Clarity From People's Bank of China