In this paper we evaluate the transmission of the US subprime crisis to emerging markets. Our interest in this topic is partly related to the widespread view that prior to the current crisis many emerging market countries had undertaken reforms that were designed to, and would in fact, insulate...

There is growing discontent with the conventional wisdom concerning economic policy. The unhappy fact seems to be that a stable macroeconomic environment may be necessary but not sufficient to coax the desired outcomes from liberalized financial systems. This paper reviews several promising...