Cover -- Contents -- Preface -- Beyond the Blame Game -- A new way of looking at financial globalization reexamines its costs and benefits -- Liberalizing Capital Account Restrictions -- Global Capital Flows: Defying Gravity -- The Paradox of Capital -- Is foreign capital associated with economic growth and, if not, why does it flow "uphill"? -- Globalization: The Story Behind the Numbers -- Surmounting the Challenges of Globalization -- Is Liberalization Reversible? -- Globalization is unsettling for many despite its many benefits -- Examining Global Imbalances -- What new data tell us about the external wealth of nations -- Converting a Tiger -- Lessons from India's gradualist approach to capital account convertibility -- Economic Policy Implications of Global Financial Flows -- The lack of a lender of last resort creates a vacuum in the international institutional structure -- The Changing Face of Investors -- The implications for financial stability of the sharp rise in international capital flows -- Dealing with Global Fluidity -- With new forces shaping global capital markets, participants in international finance are well advised to rethink their operating models -- The Globalization of Finance -- Despite considerable benefits to national economies, financial globalization has changed the structure of their markets -- Are Foreign Investors in Emerging Market Economies a Panic-Prone Herd? -- What are the consequences of herdlike behavior? -- Small Fish, Big Pond -- What is the future for developing country capital markets in a globalized economy? -- Wising Up about Finance -- With tighter links between national economies and global financial markets, better financial analysis is critical to macroeconomic management -- The New World of Banking.

Four trends altering the financial world pose challenges for the effective supervision and regulation of the financial sector -- Taking the Plunge Without Getting Hurt -- An IMF study suggests that opening up to the global economy could help developing countries cope with the adverse effects of volatility on growth -- Lifting All Boats -- A critical survey of recent studies on trade liberalization -- Trade, Growth, and Poverty -- How has increased participation in international trade affected developing countries economically? -- Globalization at Work -- Making the WTO More Supportive of Development -- How to help developing countries integrate into the global trading system -- Making Globalization Work for the Poor -- Point-Counterpoint between Kevin Watkins and David Dollar and Aart Kraay -- Demystifying Outsourcing -- The numbers do not support the hype over job losses.