Dominique Strauss-Kahn, managing director of the International Monetary Fund, cautioned that capital flowing into Asia could result in "exchange-rate overshooting, credit booms, asset-price bubbles and financial instability". Strauss-Kahn said capital controls could help moderate the inflows. The IMF has traditionally resisted capital controls, but the situation shows how diverging economic performances worldwide are forcing policymakers to consider different ideas, according to The Wall Street Journal.

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