In this review of recent work on the relationship between saving, investment and the current account, it is shown that focusing on national saving and investment behavior and modeling these in a modern intertemporal optimization framework will modify some conventional results regarding the...

This paper reviews the literature on alternative exchange-rate arrangements for a small economy. It discusses exchage-rate management for short-run stabilization purposes and the choice of exchange-rate regimes to foster policy discipline. Recent research has emphasized that the appropriate...