Read Rogoff's article about global financial instability.
1. According to Rogoff, is the status quo in international lending viable or not? Explain.
2. Can the IMF handle international financial crises? Why or why not?
3. Rogoff gives six solutions to save the global financial system (deep pockets lender of last resort, an international financial crisis manager, an international bankruptcy court, an international regulator, international deposit insurance corporation, and a world monetary authority.) What is wrong with all of these?
4. Can developing economies cope with speculative capital flows without help? Explain.
5. What will be (should be) the role that equity financing play in developing country projects?