The article discusses how monetary policy in emerging markets, like Thailand, can impact capital flows and exchange rates. The researchers found that using foreign-exchange interventions can influence currency movements and real allocations, mainly due to liquidity benefits. They also discovered that capital controls on inflows can have negative effects on stock markets if they create unprofitable conditions for foreign investors. Overall, the study suggests that a combination of sterilized FX interventions and accommodative interest rate policies may be effective in managing capital flows in emerging market economies.