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We should be grateful to Ostry and Nelson for giving clarity and balance to interrelated subjects too often dominated by passion and muddle. Keith Pavitt, University of Sussex Sylvia Ostry is chair of the Centre for International Studies, University of Toronto. Richard R. Nelson is professor of international and public affairs, business, and law at Columbia University.

This work is part of the Integrating National Economies series. As global markets for goods, services and financial assets have become increasingly integrated, national governments no longer have as much control over economic markets. With the completion of the Uruguay Round of the GATT talks, the world economy has entered a fresh phase requiring different rules and different levels of international cooperation. Policies once thought to be entirely domestic and appropriately determined by national political institutions, are now subject to international constraints. Cogent analysis of this deeper integration of the world economy, and guidelines for government policies, are urgent priorities. This series aims to meet these needs over a range of 21 books by some of the world's leading economists, political scientists, foreign policy specialists and government officials.