This paper addresses some current policy issues relating to international monetary arrangements. There is first a discussion of some questions relating to the International Monetary Fund, including its role as a possible lender of last resort to prevent future international financial contagion....

This paper considers some implications for macroeconomic policy in an open economy if-as appears highly probable-international flows of capital are now significantly sensitive to changes in income, and to expected changes in income, in different countries. This assumption is in contrast to that...