There has been notable progress in reforming the international financial system in order to improve the resilience of the world economy to volatility in international capital flows. This paper focuses on three critical issues central to the effort to reduce the frequency and virulence of crises:...

The paper lays out an analytical framework for understanding crises in emerging markets based on examination of stock variables in the aggregate balance sheet of a country and the balance sheets of its main sectors (assets and liabilities). It focuses on the risks created by maturity, currency,...