The research conducted by Professor Stephany Griffith-Jones and Professor Jose Antonio Ocampo argues that capital account liberalization involves significant risks as developing countries, and especially low-income ones, are subject to strongly pro-cyclical capital flows….
http://www.ids.ac.uk/person/stephany-griffith-jones https://sipa.columbia.edu/faculty-research/faculty-directory/jos%C3%A9-antonio-ocampo The research conducted by Professor Stephany Griffith-Jones and Professor Jose Antonio Ocampo argues that capital account liberalization involves significant risks as developing countries, and especially low-income ones, are subject to strongly pro-cyclical capital flows. The financial instability, real macroeconomic instability and limited policy space for counter-cyclical policies that capital flows generate is a strong argument of why low-income countries should be very cautious in the capital account