We introduce a methodology for measuring systemic importance. Investors care about systemicimportance because this knowledge may enable them to assess their portfolio’s vulnerability toparticular events and, if warranted, to pursue defensive strategies. Policymakers also need thisinformation...

Recent literature has argued that conventional measures of external sustainability – the trade balance and current account – are misleading because they omit capital gains on net foreign asset positions. We adjust the definition of the current account to include the capital gains and discuss...