From Mr Heiner Flassbeck.

Sir, Arvind Subramanian and John Williamson (“The Fund should help Brazil to tackle inflows”, October 26) underscore the problems faced by developing countries in dealing with unproductive capital flows and the distortions the associated exchange rate shocks can cause for trade and competitiveness of developing countries. For several years the United Nations Conference on Trade and Development has pointed to this problem and has asked for a global or at least regional approach to close this tremendous gap in international governance.