Volatile Capital Flows

This volume addresses the problem of how to manage large capital flows in a volatile economic environment like Latin-America. It argues that economic liberalization remains a valid long-term strategy for the region, but that it needs to find ways of protecting itself against financial shocks. The extent to which countries should influence the composition of capital inflows is considered, as is the adjustment to less international capital without jeopardizing domestic needs, and whether international monetary co-operation should be strengthened to protect against future crises.