Emerging markets and developing economies are severely affected by global shocks and rising volatility of capital flows. Policy responses to address these shocks have varied significantly across countries. What can we learn from recent experiences? Do flexible exchange rates always provide full insulation against the shocks?  Is there a combination of policies that work best? These and other questions are the topic of analysis of the just published IMF book, Shocks and Capital Flows: Policy Responses in a Volatile World. Based on cross-country analysis and case studies, the book highlights work by IMF staff to better understand the interactions among the policy tools in an integrated policy framework—an approach that could jointly consider monetary, exchange rate, macroprudential and capital flow management policies.