Shortly before Thailand’s central bank unveiled draconian new capital controls, Pridiyathorn Devakula, the finance minister and former central bank governor, gloated that Thailand was poised to take “historic” measures against the speculators blamed for the baht’s rapid appreciation.

But after one painful day and a precipitous 15 per cent plunge in the stock market, Mr Pridiyathorn was forced to declare the new measure would not apply to portfolio investors – a dramatic and embarrassing turnabout. It revealed a Thai government policy-making apparatus seemingly out of touch and in disarray.