This paper highlights the increased dispersion in net external positions in recent years, particularly among industrial countries. It provides a simple accounting framework that disentangles the factors driving the accumulation of external assets and liabilities (such as trade imbalances,...

We review the large literature on various economic policies that could help developing economies effectively manage the process of financial globalization. Our central findings indicate that policies promoting financial sector development, institutional quality, and trade openness appear to help...

Globalization and catching up -- The key institution -- New developmentalism -- The tendency of the exchange rate toward overvaluation -- The Dutch disease -- Foreign savings and slow growth -- Foreign savings and financial crises