I. Exchange Rates and the Balance of Payments. 1. Adjustment in the World Economy. 2. The J-Curve, the Fire Sale, and the Hard Landing. 3. Differences in Income Elasticities and Trends in Real Exchange Rates -- II. Speculation and Exchange Rates. 4. A Model of Balance of Payments Crises. 5. Target Zones and Exchange Rate Dynamics. 6. Speculative Attacks on Target Zones -- III. The Debt Crisis and Its Aftermath. 7. Financing versus Forgiving a Debt Overhang. 8. Market-Based Debt Reduction Schemes. 9. Reducing Developing Country Debt -- IV. The International Monetary System. 10. The International Role of the Dollar: Theory and Prospect. 11. Policy Problems of a Monetary Union.