The Asian crisis and the global financial turmoil that followed it have highlighted the need to improve the way financial crises are averted and managed. This text provides a practical guide to reforming the international financial architecture. It suggests a number of limited reforms that could realistically be implemented in the short and medium run. The recommendations are based on the belief that financial markets can malfunction, creating a compelling case for a financial safety net, but at the same time creating problems of moral hazard that must be addressed.
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