Wanted: World Financial Stability (Inter-American Development Bank)

The modernization of Latin America's macroeconomic policy is threatened by global financial contagion which spreads to emerging markets. This text examines the roots of this turmoil, how it spreads and what can be done in Latin America and internationally to prevent, contain and recover from it. The book reviews lessons learned from previous crises, suggests what individual countries can do to protect themselves, and discusses the role international financial institutions can play in providing solutions. It also looks at the heated exchange rate debate, links between exchange rate policy and financial fragility, and arguments for supranational currencies and dollarization.