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This is a collection of essays on economic policy in the open economy. If a country is opening up its economy, that is, allowing its domestic production to become competitive with that of the rest of the world, how do policy choices critically influence its economic performance? This book highlights the choices that can be made in several areas: monetary policy, exchange-rate policy, financial reform, protection, tax reform, and foreign capital. It includes detailed case-studies of Nigeria and Bolivia. Contributors: Michael Bruno, Joaquin Cottani, Domingo Cavallo, Rudiger Dornbusch, Michael Gavin, Arnold C. Harberger, Paul Krugman, Luis Tellez Kuenzler, Juan-Antonio Morales, Alejandro Reynoso.