the successful experience with capital account management in a number of countries brazil chile colombia malaysia republic of korea and thailand to name a few shows that developing countries can and should shield themselves from these external shocks where inflows are concerned instruments can include minimum stay requirements unremunerated reserve requirements differential tax rates on returns to portfolio capital and taxes on new debt inflows for dealing with capital outflows instruments can include taxes on capital outflows and regulating the amounts of nonprofit capital which foreigners can send abroad