Professor Eichengreen has published widely on the international monetary and financial system. His books include Capital Flows and Crises, and Financial Crises and What to Do About Them. Data shows that Emerging Asia relies less on bonds and more on banks than developed countries. What costs, if...

This paper asks how Asia should prepare for the disorderly correction of global imbalances. It recommends tightening monetary policy and allowing Asian currencies to appreciate as a way of achieving a better balance between internal and external demand. Leaving the overall level of demand...