The emerging market crises of the 1990s—in particular, the shock of the Asian crisis and its global repercussions—have generated a perception of deep inadequacies in the international financial system, and an intense debate on global financial reform, particularly regarding capital flows to emerging markets.1 This chapter highlights the challenges and constraints of different proposals about how to mitigate and cope with volatility in international capital flows. The goal is not to discuss comprehensively the many reform proposals on the international financial architecture that have emerged since the onset of the Asian crisis. Instead, particular attention is paid to the role of international public intervention in forestalling and mitigating future crises. Other reform topics, such as involvement of the private sector, are treated in other chapters.