This paper has two objectives: first, by reviewing the recent experience of five Latin American countries with the restructuring of their financial sectors, it derives lessons regarding the most effective ways to resolve banking difficulties in developing countries. Second, the paper analyzes...

An active role of fiscal policy has been rediscovered as a crisis remedy at the beginning of the financial crisis all over Europe. More recently, the Euro Crisis with its mounting governments' funding costs for a number of Southern EU member states and Ireland has called this strategy into...

The Basic Law sets out the way in which the Hong Kong Special Administrative Region (HKSAR) is to be administered for 50 years beyond 1997. It promises that the socialist system and policies in the People's Republic of China (PRC) will not apply to the HKSAR under the doctrine of 'One Country,...

This paper argues that the investor reluctance to make long-term commitments to Latin American financial markets results from experience. In the 1980s, while ex ante real interest rates on Latin American financial assets were usually high, ex-post real interest rates were often highly negative....