Table of Contents

1. Causes and Consequences of High Volatility in Developing Countries 2. The Role of Financial Insurance and Hedging 3. Dealing with Liquidity Shocks and the Procyclicality of Private Capital Flows 4. Dealing with Currency Risks 5. Dealing with Commodity Price, Terms of Trade, and Output Risks 6. Dealing with Natural Disaster Risks 7. Why Multilateral Development Bank Practices Are So Far from Their Potential 8. An Agenda Going Forward

About the Author

Guillermo Perry is a nonresident fellow of the Center for Global Development. He was chief economist of the Latin America and Caribbean region of the World Bank from 1996 to 2007. Before joining the World Bank, Perry served his native Colombia in various capacities: minister of finance and public credit (1994-96); minister of mining and energy (1986-88); director of national taxes (1974-76); and deputy director of the Departamento Nacional de Planeacion y Consejo Nacional de Politica Economica (1970).