The massive flow of capital in recent years has revealed a large gap in conventional analysis of international currency movements. Rather than starting with pre-conceived notions of sustainable or non-sustainnable current account deficits, Dr Brown presents a new analysis in which the unconventional becomes a possible mainstream scenario. It is likely that market mechanisms,highlighted through this proplem, will prove to be sufficiently robust to cope with the record flows of capital noe exiting the savings surplus countries and heading via severe speculative miscalculation of yesterday's doctrines and often a simple extension of national or international agendas. Dr Brown shows how neo-mercantilist forces iin Washington have formed an undesirable currency policies on East Asian countries. This unholy alliance promises not only economic disadvantage to all involved but also sets back the liberal political agenda. Brendan Brown is a practising international economist in the City of London. He heads the economic research department at Mitsubishi (UF) Securities International and as such advises investment clients in Iappan and Europe. He is the author of many books on the subject of international finance, including theory, history and practice. He is a regular columnist in the Nikkei Kin-yu Shimbun and also contributes articles to several publications, including the Financial Times and the International Herald Tribune