As a growing number of nations usher in market economies, policymakers must grapple with key decisions regarding capital controls and capital account liberalization. In this ambitious volume, distinguished economists evaluate these choices within the context of economic efficiency, economic structure, and political consequences in an increasingly global and competitive market environment. Critically assessing traditional positions on the timing and degree of liberalization of trade and capital flows, they also consider newer arguments from the fields of public choice, financial economics, and industrial organizations. In addition, the contributors examine some of the specific approaches undertaken in various emerging market economies, including in east-central Europe and the former Soviet Union.