This is a collection of essays on economic policy in the open economy. If a country is opening up its economy, that is, allowing its domestic production to become competitive with that of the rest of the world, how do policy choices critically influence its economic performance? This book...

The paper reviews the channels of macroeconomic interdependence under flexible exchange rates. The model emphasizes the linkage of international capital markets, expectations, and nominal and real wage stickiness in affecting the impact of disturbances on employment, prices, and the exchange...

This book is a teaching manual in non-technical language for policy-makers in developing countries. At the request of the Economic Development Institute of the World Bank, the editors assembled fourteen economists to write about the issues facing an open economy. The book focuses on policy...