The figure is a table with two rows and two columns. The first column is titled “Deep FX Markets,” and the second column is titled “Shallow FX Markets.” The first row is title “Far from Debt Limit” and the second row is titled “Near Debt Limit.” The text in the cell corresponding to the first row and first column reads: Foreign rate increase — policy rate and exchange rate depreciation The text in the cell corresponding to the second row and first column reads: Sudden stop — ex ante capital control, ex post policy rate cut and depreciation The text in the cell corresponding to the first row and second column reads: Taper tantrum — capital control subsidy, buy local currency and sell FX, no change in policy rate or exchange rate The text in the cell corresponding to the second row and second column reads: Sudden stop —lower ex ante capital control, ex post policy rate cut and depreciation