First published 2004
This book examines the recurring financial crises that strike emerging market economies when foreign reserves dwindle and international capital markets shut their doors. Roubini analyzes the desperate phone calls that finance ministers make to the IMF managing director and US treasury secretary when their countries teeter on the edge of currency devaluation and debt default. The author argues that crisis response requires a nuanced approach that recognizes each situation's unique circumstances while maintaining a consistent framework. Rather than applying one-size-fits-all solutions, Roubini advocates for tailored policies that provide predictability to both borrowing nations and their creditors. The book explores the delicate balance between bailouts and bail-ins as tools for resolving financial emergencies. Roubini makes the case that effective crisis management must account for the specific conditions facing each country while establishing clear guidelines that all parties can understand and anticipate.
Genres: business, political-science, economics, non-fiction, finance, academic
Vibes: thought-provoking
Tropes: nuanced-approach
348 pages · Kindle Edition · Peterson Institute for International Economics