Intertemporal trade and the current account balance -- Dynamics of small open economies -- The life cycle, tax policy, and the current account -- The real exchange rate and the terms of trade -- Uncertainty and international financial markets -- Imperfections in international capital markets -- Global linkages and economic growth -- Money and exchange rates under flexible prices -- Nominal price rigidities : empirical facts and basic open-economy models -- Sticky-price models of output, the exchange rate, and the current account.