This paper considers some implications for macroeconomic policy in an open economy if-as appears highly probable-international flows of capital are now significantly sensitive to changes in income, and to expected changes in income, in different countries. This assumption is in contrast to that...

This paper addresses some current policy issues relating to international monetary arrangements. There is first a discussion of some questions relating to the International Monetary Fund, including its role as a possible lender of last resort to prevent future international financial contagion....