Even before a consensus had developed about the lessons from the East Asian crises, events in Brazil and Russia added grist to the policy analysts' mill. In this welter of conflicting interpretations, it is difficult to settle on an appropriate set of responses, in part because there is no...

Using the indexes we developed (Aizenman, Chinn, and Ito, 2008) to measure the degree of the three policy choices countries make with respect to the trilemma: exchange rate stability, monetary independence, and capital account openness, we investigate the normative questions pertaining to the...