The decisions of the Federal Reserve of the United States (Fed) determining interest rates have played a critical role in capital inflows/outflows toward Mexico and Latin America. The causal relationship that exists between the Fed and emerging markets is quite close; a clear example of this is...

Mainstream thinking seems to support the idea that once a financial crisis <i>ends</i> everything returns to normal. At the most, some regulatory changes on capital and reserves of the banks could be required. However, to understand what really happens during financial crises and the changes in overall...