time, the definition of external balance has evolved in response to changes in the world economy's structure. The foreign … steady consumption level consistent with the economy's expected intertemporal budget constraint. Intertemporal approaches to …

-account liberalization leads to an initial period of real appreciation, but a long-run real depreciation; and the economy passes through …

Among the developing countries of the world, those emerging markets that have sought some degree of integration into … world finance are characterized by higher per capita incomes, higher long-run growth rates, and lower output and consumption … resolving the open-economy trilemma. Given their structural and institutional features, many emerging economies cannot live …

disorder in the world economy. The interwar disorder often is linked to policies inconsistent with the constraint of the open-economy … yield. This historical analytic narrative is compelling with significant ramifications for today's world, if true but …

mobility has evolved must be understood within the framework of the basic policy trilemma constraining an open economy's choice …

inescapable in the real world of asymmetric information and imperfect contract enforcement. I argue, however, that in confronting …