What advice for countries at this time of crisis?

A friend who is a top economist from a developing country, asks what advice I have that might be useful for his country.

As it is a country I don't know very well, I can only offer this generality:

The crisis is the result of an unprecedented growth around the world of unsound currencies (too much money being printed, along with artificially low interest rates), as well as lax governance and regulation.

So, now that the pendulum is swinging the other way, the country that deflates first (safely!), and puts in the best regulations and governance, will win the most.

Of course that won't solve the instability of the global system - if we want to do that we have to look at entirely different solutions. These are explored in a paper that I hope to put soon on my Blog (as soon as it is published formally in the Proceedings of a Conference). Sphere: Related Content