In Defense of Free Capital Markets: The Case against a New International Financial Architecture

Have the lessons of the 1990s financial crises in Asia and elsewhere been learned? The recent fall of the Turkish currency-soon after the International Monetary Fund arranged a $10 billion bailout-suggests that the answer is no. In his new book, David DeRosa explains how currency crises are caused and why financial officials should not be given even more power to regulate capital markets. Countries must move away from politically managed exchange rates that have been a principal source of financial turmoil in emerging markets. Andrew Berg and Steve Hanke will provide comments on DeRosa's book and on the significance of the spread of floating and fully fixed currencies around the world. All three speakers will discuss what role, if any, the IMF would have in a world where exchange-rate policies were consistent with the free market.