Similar exchange rate appreciation pressures occur.

• Similar exchange rate appreciation pressures occur.

• • Policy makers have intervened in fx markets.

• Capital controls (minimum stay requirements, international transaction taxes, and outright prohibitions)

• • Yes: to ensure stability in a very volatile environment. Evidence that the authorities obtained some freedom to vary the mix between raising interest rates and reducing the inflow of capital.
  • No: But the future? Also, administrative capacity is found to be very important for successful capital control implementation.