The issue of speculation in emerging markets and the unfettered trade in foreign currencies is the most immediate and vexing problem faced by policymakers.

Politicians and central bankers worry about how to achieve economic stability without inhibiting the flexibility necessary for growth. Yet flows of speculative capital into fragile emerging markets have not brought any visible long-term benefits. Indeed, it can be argued that they have actually hindered the evolution of the liberal market system in many countries.

In this instance, speculation has been no friend of capitalism.

With respect to the issue of speculation in foreign currencies in emerging markets, the text makes it clear that

Item 4 - the inflow of speculative capital is yet to demonstrate its merits in many countries.