Capital flows to the developing economies have long displayed a
boom-and-bust pattern. The cycle turned abruptly in the 1990s,
however: surges in lending were followed by the Mexican peso crisis
of 1994-5 and the sudden collapse of currencies in Asia in 1997.
This volume maps a new and uncertain financial landscape, one in
which volatile private capital flows and fragile banking systems
produce sudden reversals of fortune for governments and economies.
This environment creates dilemmas for both national policymakers
who confront the mixed blessing of capital inflows and the
international institutions that manage the recurrent crises.
General
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