It presents the main elements of 20th century macroeconomics and shows how the models produced for industrialised societies need to be modified for various groups of less developed countries. It is designed for those who start with little or no economics but need to understand the issues involved in the stabilizing of national income and the price level, and in keeping a sustainable balance of payments. It focuses on a number of measures designed to create stability including fiscal policy, the exchange rate, wages and interest rates. There are several case studies of policy experiments conducted since the mid 1970s.

The book will be essential reading for graduate students from developing countries and all students taking courses on development economics.

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Anthony Clunies-Ross, Professor of Economics, University of Strathclyde, UK

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