Soldiers and economists: the last people you want running a country. Thailand's abandonment of capital controls, only a day after they were imposed, was utterly inept. It undermines the country's government, which came to power in a coup d'etat last September. The supposed justification for that coup was government corruption and incompetence. The alternative, however, appears to be even worse.

Two days ago, Thailand demanded that all foreigners bringing money into the country place 30 per cent of it on deposit at the central bank, without interest. To take their money out again within a year overseas investors would have to pay a 10 per cent penalty. Yesterday's change of direction, which came after crisis talks between the central bank, the government and the stock exchange, has removed that requirement for investment in equities.