An IMF paper published today, says sudden surges in capital can pose economic and financial challenges for countries and controls on inflows of foreign capital can be one tool in the broad policy toolkit. However, countries’ should take account of the impact of controls on other countries. The view is a radical change from the stance of the Fund in recent decades and on Monday in Mumbai, Lord Adair Turner, chairman of the UK Financial Services Authority, said a dominant conventional wisdom of economy theory and policy - -  the Washington Consensus as it was labelled - - has assumed and asserted that an increase in the financial intensity of the economy is beneficial. Turner said short-term capital flows can under some circumstances be harmful: and complex financial innovation in developed countries has produced few demonstrable benefits and resulted in an increased risk of financial instability.