Introduction 1 Intertemporal Trade and the Current Account Balance 2 Dynamics of Small Open Economies 3 The Life Cycle, Tax Policy, and the Current Account 4 The Real Exchange Rate and the Terms of Trade 5 Uncertainty and International Financial Markets 6 Imperfections in International Capital Markets 7 Global Linkages and Economic Growth 8 Money and Exchange Rates under Flexible Prices 9 Nominal Price Rigidities: Empirical Facts and Basic Open-Economy Models 10 Sticky-Price Models of Output, the Exchange Rate, and the Current Account Supplements to Chapter 2 App. A Methods of Intertemporal Optimization App. B A Model with Intertemporally Nonadditive Preferences App. C Solving Systems of Linear Difference Equations Supplement to Chapter 5 App. A Multiperiod Portfolio Selection Supplement to Chapter 8 App. A Continuous-Time Maximization and the Maximum Principle References Notation Guide and Symbol Glossary Author Index Subject Index