Session I -- 1 The U.S. External Deficit: Its Causes and Persistence -- Commentary -- Commentary -- Commentary -- Session II -- 2 The Current Account and Macroeconomic Policy: An Econometric Analysis -- Commentary -- 3 The Impact of the U.S. Current Account Deficit on Other OECD Countries --...

According to the most common understanding, currency crises are always and everywhere a monetary phenomenon. Based on a formal theoretical model and ample empirical evidence, this article argues instead that currency crises are always and everywhere about external imbalances. They are usually...