For the historian of contemporary economic thought, the career of Leland B. Yeager has an undeniable fascination. His particular combination of pedagogic charisma, wide-ranging preoccupations and straight-forward scholarly style attracted to him many generations of students during the heyday of...

This paper argues that while sources of potential discipline over domestic macro economic policies such as pegged exchange rates, high capital mobility, and IMF policy conditionality are commonly viewed as constraints, it is usually more productive to view them as influencing incentive...