Table of Contents

Part 1 Exchange rates and the balance of payments: adjustment in the world economy; the J-curve, the fire sale, and the hard landing; differences in income elasticities and trends in real exchange rates. Part 2 Speculation and exchange rates: a model of balance-of-payments crises; target zones and exchange rate dynamics; speculative attacks on target zones (with Julio Rotembert). Part 3 The debt crisis and its aftermath: financing versus forgiving a debt overhang; market-based debt reduction schemes; reducing developing country debt. Part 4 The International Monetary System: the international role of the dollar - theory and prospect; policy problems of a monetary union.