This book examines the causes, consequences and policy significance of international capital movements and nations' external account imbalances. Traditional theoretical approaches to balance of payments analysis, such as the classical, elasticities, absorption, monetary and Mundell-Fleming models are critically evaluated against an extended international macroeconomic accounting framework. More meaningful capital theoretic models then link saving, investment and foreign capital movements to highlight the macroeconomic gains from international capital mobility and international trade in saving.

A.J.MAKIN

Preface and Acknowledgements - Introduction - The External Accounting Framework - Traditional Approaches to the External Accounts - Capital Theoretic Approaches to the External Accounts - Capital Mobility and the External Accounts - Policy Issues and Conclusion - Bibliography - Index