Following research of systemic crises that plagued developing countries throughout the 1990s, economists have reached a consensus that liberalization of capital flows carries important prerequisites if these countries are to observe the benefits offered by financial globalization. Such conditions include stable macroeconomic policies, healthy fiscal policy, robust bank regulations, and strong legal protection of property rights. Economists largely favor adherence to an organized sequence of encouraging foreign direct investment, liberalizing domestic equity capital, and embracing capital outflows and short-term capital mobility only once the country has achieved functioning domestic capital markets and established a sound regulatory framework. An emerging market economy must develop a credible currency in the eyes of both domestic and international investors to realize benefits of globalization such as greater liquidity, greater savings at higher interest rates, and accelerated economic growth. If a country embraces unrestrained access to foreign capital markets without maintaining a credible currency, it becomes vulnerable to speculative capital flights and sudden stops, which carry serious economic and social costs.