Global Capital Flows: Should They Be Regulated?

Examines the rapid growth and dramatic changes in capital flows globally and to emerging markets. Reviews the theoretical literature on financial volatility, systemic risk, and financial crises, and analyzes costs and benefits of large and volatile capital flows to developing and transition economies. Discusses policy options on how recipient countries can deal with surges in capital flows, and makes innovative proposals on how regulators in source countries can reduce the likelihood of currency crises. Annotation c. by Book News, Inc., Portland, Or.