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The NATREX is a model of the equilibrium real exchange rate, which is where the real exchange rate is heading. The NATREX model has two components: the long-run equilibrium real exchange rate and the dynamics of adjustment of the medium-run equilibrium to the long-run equilibrium. In the medium-run equilibrium, the ratio of the external debt/GDP is predetermined, and the real exchange rate is associated with both internal and external balance. The real exchange rate and debt ratio are endogenous variables. In full stock-flow equilibrium, the long run equilibrium real exchange rate and external debt ratio depend upon the vector of time varying fundamentals, which are productivity and thrift in the country relative to the rest of the world.

This chapter looks at exchange rate management and other policy options for an open economy. It begins with an introductory discussion of overall macroeconomic management for open economies, including the issues of internal and external balance and inflation targeting. It then examines how countries can attempt to manage the exchange rate. Topics covered in this section include the benefits of maintaining an undervalued exchange rate in some developing countries, government interventions to smooth out exchange rate fluctuations, and the trade-off between stability and flexibility when choosing an exchange rate regime. The chapter concludes with an analysis of other policy options in open economies, including heterodox microeconomic interventions, public sector liability management, and debt restructuring.

Regulatory disputes place significant demands on international courts and tribunals. At present the production of regulatory standards in the work of international courts and tribunals can be viewed in terms of an ordering of plural domestic and international legal orders rather than a process of constitutionalisation. Yet the new body of regulatory rubrics appearing across the jurisprudence addressed in this book and beyond marks a significant development globally. Collectively, these standards will set the terms for States’ exercise of public power with effects for populations beyond their own. However, international courts’ and tribunals’ contribution to the elaboration of global regulatory standards needs to be understood as part of a wider process involving intergovernmental negotiations and the administrative implementation of relevant norms. Public information and international engagement is essential. Meantime, transparent articulation of reasons for international adjudicatory decisions is needed, together with ongoing reflective interaction between judges, practitioners and the broader scholarly community.