Current Account and External Financing, edited by Kevin Cowan, Sebastián Edwards, and Rodrigo O. Valdés, Santiago, Chile. © 2008 Central Bank of Chile. We thank Juan Echavarría, Nicolás Eyzaguirre, and Miguel Fuentes for useful comments; Kevin Cowan, Sebastián Edwards, and Rodrigo O. Valdés for proposing improvements in the current version; and Pamela Jervis for research assistance. The paper w...