In the 12 months to June, over RMB 600 billion poured into China from short-term lending by nonresidents to Chinese corporations. These developments are worrying for four broad reasons.

The need for careful design of economic policies at the national level, and coordination at the global level, may be as important today as they were at the peak of the crisis two years ago.

In emerging markets, policymakers must act now to avoid future crises. It is important to maintain the appropriate mix of macroeconomic and prudential financial policies to deal with the challenges posed by capital inflows.

For emerging market policymakers, the main challenge will be to tackle the macroeconomic and financial challenges of sizable, and potentially volatile, capital inflows

Fearful financial markets, an uncertain growth outlook, fiscal anxieties, long unemployment lines....no other financial crisis since the Great Depress...

In the wake of the September 2008 onset of unprecedented financial turmoil, policymakers recognized that earlier danger signs had not been synthesized into an actionable warning.

Just as a tornado in Kansas transplanted Dorothy and, her dog, Toto, from familiar comforts to the unknown land of Oz, the global crisis has led many ...