Publisher's Synopsis
When does a current account payments deficit become a policy problem? This study reconsiders the current account in the context of integrated world capital markets. Two studies appraise "rules of the game" in the form of exchange rate management (based on FEERs) and the implications of ERM membership. The remaining papers investigate the current account from two viewpoints. With capital market integration, the current account position reflects the net outcome of government and private financing decisions. Since these decisions will be taken against a background of economic performance, however, the alternative trade competitiveness focus retains relevance.;Developments in both trade and financing patterns are investigated in the OECD economies and in the context of the less developed countries. The case of the UK receives particular emphasis with financing and competitiveness issues fully appraised. Chris Miller has written on international economics for the "Economic Journal" and the "European Economic Review". Nick Snowden has also written "International Institutions in Trade and Finance" (with A.I. MacBean) and "Emerging Risk in International Banking".
