Introduction

Abstract

These essays are about macroeconomics and about the similarities and differences between an open and a closed economy, with respect to growth, allocation, stability, capital accumulation, business and household behavior, adjustment of financial markets, and the implications of these for stabilization policy. In comparison with another book bearing a related title, Dombusch (1980), the emphasis is not on balance-of-payments adjustment, although this receives its due, but on the behavior of the large aggregates in an economy which happens also to be open rather than closed.