People in emerging markets have mixed feelings about financial liberalisation and may not regret its reversal.
But recession, financial liberalisation and the squeeze on banks are all playing their part.
That appears to be anathema to a government that presided over a decade of financial liberalisation.
And the banking system is much healthier now than in the 1980s, when financial liberalisation spurred reckless lending.
Had the financial liberalisation of 1984-85 not taken place, it is probable that momentum for reforms elsewhere would have stalled.
But financial liberalisation is risky, and it therefore makes sense for economies with dodgy financial systems to open up to foreign capital more cautiously.
India has been a leader among countries sceptical of financial liberalisation.
Financial liberalisation makes many governments nervous, especially those in Asia.
Over the past decade investors, firms and consumers put far too much faith in the power of information technology, globalisation, financial liberalisation and monetary policy to reduce volatility and risk.
Financial liberalisation does help stimulate growth for a while.
Indeed, speculative excesses in asset prices and credit flows might occur more frequently in future, thanks to the combined effects of financial liberalisation and a monetary-policy framework that concentrates on inflation but places no constraint on credit growth.
Financial liberalisation is supposed to help households to borrow in bad times and so smooth out consumption, but again it is a two-edged sword: it also makes it easier for firms and households to take on too much debt during booms, which may exacerbate subsequent downturns.
Few of today's advocates of capital restrictions would like to see an end to the broader process of financial and economic liberalisation.
Combined with the liberalisation of financial markets, this may cause big changes in the behaviour of firms and individuals, and hence the previous relationship between money and inflation is likely to break down.
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As finance minister, he has presided over a much-needed and much-delayed liberalisation of the financial sector.
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The Economist has, in the past, argued correctly that the sequencing of the reforms was not optimal, with the relatively easy opening up of currency and financial markets preceding the politically more difficult liberalisation of goods and labour markets.
Some Asian countries are using the region's financial crisis as an excuse to offer less liberalisation than they might have.
So liberalisers may have ulterior motives in mind, calculating that external liberalisation will force the pace of domestic financial reform.
And though they largely refrained from shutting their markets in the aftermath of the 1997-99 financial crisis, most have little appetite for further domestic liberalisation.
To mitigate the association agreement, the EU has put forward so-called "banana accompanying measures", which give financial support to regions that may be affected by new trade liberalisation rules.
To mitigate the trade agreement, the EU has put forward so-called "banana accompanying measures", which give financial support to regions that may be affected by new trade liberalisation rules.
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Specifically, he will use the Spanish presidency to promote better linking of European transport networks, the liberalisation of gas and electricity markets, the integration of financial markets, the construction of a more flexible labour market and better training for Europe's students.
The result would be a controlled liberalisation of capital outflows, along with the creation of new financial institutions and instruments at home.
Other liberalising measures proclaimed at Lisbon for instance, the liberalisation of energy markets, postal services and the completion of a single financial market have got nowhere.
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