Wanted

Latin America has made a major effort over the past decade to put its financial house in order, modernize its macroeconomic policy, and undertake sweeping structural changes. These gains are now threatened by global financial contagion that spreads despite sound fundamentals, particularly to emerging markets. "Wanted: World Financial Stability" examines the roots of this turmoil, how it spreads, and what should be done both 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.