This work analyses the trends in capital flows to emerging markets since the Asian crisis, their determinants and policy implications. It explains why such flows have declined so dramatically, emphasising both structural and cyclical factors. Senior bankers, regulators, and well known academics explain the behaviour of different players. The book shows in detail how such behaviour has contributed to the decline of flows and their volatility. It suggests what coping mechanisms developing countries could adopt to deal with crisis situations; what measures should be taken at the national and international levels to make recipient countries less vulnerable to international financial instability; how such instability can be reduced and what can be done on the source countries to encourage larger more stable capital flows to developing countries.