The issue of economic development and monetary stability has produced one of the most passionate debates in economic literature. Yet, much of the evidence employed in this debate is contradictory. This volume brings together diverse views on the subject within a coherent framework. The work includes a balanced assessment of empirical findings and their theoretical foundations on the role of money and growth. A discussion of financial liberalization reform in developing countries is also included, as well as an analysis of monetary policy as an instrument of economic stabilization. The text examines the monetary supply and demand process in developing countries and provides a study of the relationship between money, credit, the balance of payments, inflation and the exchange rate system. It includes a reflection on market failures and the role of government.