ABSTRACT. Bhattacharya contends that the Indian experience could be of help in expanding our knowledge on two problems: the first relates to the choice of monetary policy strategy by a central bank. Duarte holds that a flexible exchange rate regime is supported by optimal monetary policies when the model is consistent with two observations. Lardy maintains that China’s leadership has long understood the risks of liberalizing the capital account when large portions of its banking system are insolvent. Moreno and Villar contend that foreign bank entry may enhance financial stability by permitting greater diversification of exposures and by improving risk management.