Educated, broad-minded and subtle government leaders, a small set of second-generation wealthy bright local business monopolies, a pool of educated but none-too-skilled workers, creaking infrastructure and utilities unable to keep pace with development, policy inertia when not downright policy paralysis, accompanied or not by flows of aid, remittances and foreign direct investment, will not facilitate the new transition.
Central banks also often have or share with Finance Ministries control over exchange rate policy, including the choice of an exchange rate regime and the management of that regime. So, today, I consider the role of exchange rate policy, macroeconomic policy, and bank supervision and regulation in the crises and suggest some lessons in each case.