The currency crises that engulfed East Asian economies in 1997 and Mexico in 1994--and their high development costs--raise a serious concern about the net benefits for developing countries of large flows of potentially reversible short-term international capital. Written by senior policy-makers and academics, the contributions to this volume examine in depth the macroeconomic and policy dilemmas confronting public authorities in the emerging economies as they deal with short-term capital movements, especially in the period before the outbreak of these crises.

• Part I. The International and Analytical Context


• 1: Peter Montiel and Carmen M. Reinhart: The Dynamics of Capital Movements to Emerging Economies During the 1990s


• 2: E. V. K. FitzGerald: Short-Term Capital Flows, the Real Economy and Income Distribution in Developing Countries


• 3: Jane W. D'Arista and Stephany Griffith-Jones: The Boom of Portfolio Flows to 'Emerging Markets' and its Regulatory Implications


• Part II. Case Studies


• 4: Won-Am Park: Korea's Management of Capital Flows in the 1990s


• 5: Manuel F. Montes: The Southeast Asian Currency Crisis


• 6: Anwar Nasution: Capital Inflows and Policy Responses: The Case of Indonesia in the 1990s


• 7: Stephany Griffith-Jones: Causes and Lessons of the Mexican Peso Crisis


• 8: Eliana Cardoso: Brazil's Macroeconomic Policies and Capital Flows in the 1990s


• 9: Manuel R. Agosin and Ricardo Ffrench-Davis: Managing Capital Inflows in Chile


• 10: Brian Kahn: Capital Flows and Policy Responses in South Africa in the 1990s


• 11: Jorge Braga de Macedo: Crises? What Crises? Escudo from ECU to EMU


• Part III. Conclusions


• 12: Stephany Griffith-Jones, Manuel F. Montes and Anwar Nasution: Managing Capital Surges in Emerging Economies