In a changed international context, it is also important to recognize that countries which are integrated into the world financial system are constrained in using an autonomous management of demand to maintain levels of output and employment. Expansionary fiscal and monetary policies - large government deficits to stimulate aggregate demand or low interest rates to encourage domestic investment - can no longer be used, as easily as in the past, because of an overwhelming fear that such measures could lead to speculative capital flight and a run on the national currency.25 The problem exists everywhere. But it is far more acute in developing countries