I Exchange Rates and Monetary Policy -- II Optimal Exchange Rate Policy for Stabilizing Inflation in Developing Countries -- Appendix to Part ll Exchange Rate Policy and Macroeconomic Stability -- III Exchange Rate Volatility, Investment, and Growth: Some New Evidence -- Appendix to Part III Description of the Data -- IV Speculative Attacks -- Appendix to Part IV Foreign Exchange Hedging with Synthetic Options and the Interest Rate Defense of a Fixed-Exchange-Rate Regime -- V The Role of the Dollar as an International Currency -- VI International Capital Flows: Direct vs. Portfolio Investment -- Appendix A to Part VI A Survey of Academic Literature on Controls Over International Capital Transactions -- Appendix B to Part VI Are Recent Capital Inflows to Developing Countries a Vote For or Against Economic Policy Reforms? -- VII Central Bank Coordination in the Midst of Exchange Rate Instability.

The dramatic growth of international capital flow has provided unprecedented opportunities and risks in emerging markets. This book is the result of a conference exploring this phenomenon, sponsored by the Federal Reserve Bank of Dallas. The issues explored include direct versus portfolio investment; exchange rates and economic growth; and optimal exchange rate policy for stabilizing inflation in developing countries. It concludes with a panel discussion on central bank coordination in the midst of exchange rate instability.