Financial stability in developing countries depends on, among other things, the robustness of their domestic financial sector, the soundness of their macroeconomic policies, the volatility of international capital flows, and the overall stability of the global financial system. This book analyses these issues in their individual capacity and their mutual relationships, based on rigorous empirical research. 

Policy insights include that: Asia should and will play a much larger role in global financial governance; to achieve stability and growth in emerging economies, more is needed than just a better regulated and supervised domestic financial system; in Argentina and Brazil the recent financial crises cannot be attributed to a poorly regulated banking system as regulation was already stricter than in the United States.

Contributors to the book include development thinkers from ECLAC (José Antonio Ocampo and Rogério Studart), UNCTAD (Heiner Flassbeck), the World Bank (Amar Bhattacharya) and the IMF (Mark Allen), deputy governors of the central banks of Hungary (György Szapáry), Germany (Jürgen Stark) and the Netherlands (Henk Brouwer), widely respected professors of economics: Yung Chul Park, Eisuke Sakakibara, Barbara Stallings, Stephany Griffith-Jones and Charles Wyplosz, and development finance experts from the private sector like banker Frans van Loon (ING).