Written out of the authors original thoughts and empirical observations while serving in some renowned economic organizations. It provides a pioneer treatment of critical topics in monetary economics and insightful policy implications, among which are the 1991 US recession, the liberalization of financial markets, and the East Asian Crisis. The book is a necessity for academic researchers in monetary economics, an enlightening reference for economists working in central banks or international institutions, and an innovative work that deserves wide discussion and may eventually change our view of monetary policies. Professor Joseph E. Stiglitz is the winner of the 2001 Nobel Prize for Economics.