The Redesign of the International Financial Architecture from a Latin American Perspective: Who Pays the Bills?

Abstract:

This article discusses this "political economy" side of redesigning the international financial architecture. It draws heavily from our previous work (Fernández–Arias and Hausmann 2000a, 2000b). The next section reviews the problems of international financial markets. We subsequently assess their importance in light of the evidence and discuss for whom they are crucial. The last section reviews the solutions that are being proposed and discusses the distribution of their costs and benefits. Concluding remarks follow.