Unfortunately the academics rarely agree on the best solution. Take the remedies suggested for Brazil's ills. Harvard's Mr Sachs has long been arguing for a floating exchange rate, which the country introduced on January 15th. Rudi Dornbusch, of MIT, is equally adamant that a currency board remains best. Policymakers prefer to play down exchange rates.
Any regime can work, they argue, provided it is backed by sound economic fundamentals.
That is true but trite. Asian countries got into trouble because of their exchange-rate pegs, and were then thrown into chaos by the volatility of floating rates. On the face of it, in a world of capital mobility a more flexible exchange rate seems the best bet. It will also make foreign banks more circumspect about lending. At the same time it will give policymakers the option of devising their own monetary policy.