This comprehensively revised and updated edition develops the themes contained in the first edition. Students and teachers who are familiar with the book will notice that half of the chapters are entirely new, with the other half having changed significantly to take into account the changes that have occurred in the global economy since the turn of the millennium.With questions for discussion and the use of case studies, the book covers such themes as: standard closed and open macroeconomic models; a full evaluation of the post-Washington consensus model; IMF stabilization programmes and their effects on developing economies; the pressing problems of indebtedness; and financial sector reforms in developing countries. This textbook is a useful accompaniment for students of development economics and should prove popular with lecturers and academics alike.