Here, Louis Gave offers a remarkably creative way to stem, and indeed to reverse, capital flight from Southern Europe. His solution, improbably enough, derives from his personal experience of relocating to Hong Kong in the midst of the Asian Crisis of 1997. "The current market failure in Europe is obvious enough: long-term investors can hedge themselves against government bankruptcies (through the CDS market) but cannot hedge themselves against possible currency devaluations. It is this market failure that the ECB needs to address. If it did, the private sector could take care of the rest."