Capital Controls Coming Soon

From Bloomberg:

The International Monetary Fund endorsed nations’ use of capital controls in certain circumstances, making official a shift, which has been in the works for three years, that will guide the fund’s advice.
In a reversal of its historic support for unrestricted flows of money across borders, the Washington-based IMF said controls can be useful when countries have little room for economic policies such as lowering interest rates or when surging capital inflows threaten financial stability. Still, it said the measures should be targeted, temporary and not discriminate between residents and non-residents.

“Capital flows can have important benefits for individual countries across the fund membership and the global economy,” IMF staff wrote in a report discussed by the board on Nov. 16 and published today. They “also carry risks, however, as they can be volatile and large relative to the size of domestic markets.”
Countries from Brazil to the Philippines have sought in recent years to manage inflows of capital that put upward pressure on their currencies and threatened to create asset bubbles. The new guidelines will enable the fund to provide consistent advice, though rules prevent it from imposing views about managing capital flows on its 188 member nations.

Courtesy of The Economist

My view:

More managing from the world improvers at the IMF.

Does anyone stop to consider that capital controls would be irrelevant if non-fiat money was used and central bank tinkering was non-existent?

Surely a course in logic could bring to light the error of the fiat system?

One wonders about the nature and extent of the 2003-2006 US housing bubble and subsequent bust if instead of an engineered central banking based economy, we had a specie based currency and no central bank market interference?