CONSTRUCCION POLMON

1. EM and the World Economy: Something is Different this Time Visit to the Central Bank of Peru Leonardo Leiderman October 17, 2002

2. Flight to Quality – Increased Risk Aversion

3. An increase of EM and High Yield Bond Spreads

4. Portfolio Flows are Drying Up

5. Capital Flows Did Not Recover From the 1997-98 Crisis

6. Funds Available to Emerging Markets Have Dried Up

8. A Reflection of Fundamental Problems

9. Policy is in Place and Has Been Flexible

10. The Fiscal Stance has Gone From Surplus to Deficit

11. Growth is Well Below Potential

12. Is There Any Hope From Europe and Japan?

14. The Majority of Non-Oil Commodity Prices Remain Depressed

15. EM: Something is Different Now—Exchange Rate Flexibility…

16. EM: Something Else is Different This Time-SELECTIVITY

17. Selectivity Applies to the Real Sector (Growth) As Well

18. EM and the World Economy: Something is Different this Time Visit to the Central Bank of Peru Leonardo Leiderman October 17, 2002