The IMF is the first economic institution in line to protect countries from the effects of financial crises and to insulate the world economy from possible systemic risk. However, many argue that the IMF is insufficiently equipped to do this job, whilst others argue almost the opposite: the IMF's well-intentional actions induce other countries to take risks which increase their exposure to the same problems. This book, written by leading economists from both universities and the multilateral agencies, combines rigorous economic analysis with insider perspectives on key policy debates. It analyses the recent Asian and Argentine financial crises, issues of policy ownership, the more general quest for financial stability and governance of the IMF. It is an essential reference for anyone interested in the role of international financial institutions in our globalised economy.