What are the reasons for and the costs of Latin America's volatility? Because there is no consensus on these fundamental questions, there is no consensus on the appropriate policy response to macroeconomic volatility in Latin America, and other shock-prone countries. This paper provides new...

In this paper we argue that the main difference between the crises is their degree of anticipation. In particular the Asian crises was widely unanticipated, while the Argentinean and Brazil crises were anticipated.