Part 9/10:
Importance of Sound Macroeconomic Policies: Countries with strong fiscal management were better equipped to withstand shocks than those who neglected these principles.
Risk of Short-Term Capital Reliance: Reliance on fickle hot money streams can expose an economy to rapid downturns, stressing the importance of managing capital flows.
Need for Robust Financial Regulation: Effective and transparent regulatory frameworks are crucial in mitigating excessive risks within the financial system.
Flexibility in Exchange Rates: Maintaining flexible exchange rates can provide a buffer against external economic shocks.