Pierre-Richard Agenor is the Hallsworth Professor of International Macroeconomics and Development Economics at the University of Manchester. Peter J. Montiel is the Fairleigh S. Dickinson Jr. '41 Professor of Economics at Williams College.

Praise for the previous edition: "Since the second edition of this text was published in 1999, both the field of development economics and developing economies themselves have undergone substantial change. Agenor and Montiel have added considerable new material to this third edition, most notably dealing with issues that have risen to prominence in the last decade... This comprehensive treatment of development from a macroeconomic perspective is an indispensable reference for graduate students and faculty."--Choice Praise for the previous edition: "Since its first edition, the book has remained the definitive text on the macroeconomics of developing countries. In this third edition, the authors try to cover the latest advances in this rapidly changing field, making the book the most comprehensive source on the subject."--Abstracts of Public Administration, Development, and Environment

• *Frontmatter, pg. i*Contents, pg. vii*Preface to the Fourth Edition, pg. xix*Introduction and Overview, pg. 1*Chapter 1. Economic Structure and Aggregate Accounts, pg. 12*Chapter 2. Behavioral Functions, pg. 52*Chapter 3. The Government Budget and Fiscal Management, pg. 78*Chapter 4. Macroeconomic Effects of Fiscal Policy, pg. 109*Chapter 5. Financial Markets and the Monetary Transmission Mechanism, pg. 144*Chapter 6. A Framework for Monetary Policy Analysis, pg. 182*Chapter 7. Inflation Targeting, Macroeconomic Stability, and Financial Stability, pg. 224*Chapter 8. Choosing an Exchange-Rate Regime I: Credibility, Flexibility, and Welfare, pg. 262*Chapter 9. Choosing an Exchange-Rate Regime II: The Role of Shocks, Contractionary Effects, and Moral Hazard, pg. 295*Chapter 10. Inflation and Short-Run Dynamics, pg. 331*Chapter 11. Analytical Issues in Disinflation Programs, pg. 381*Chapter 12. Dynamic Stochastic Equilibrium Models with Financial Frictions, pg. 441*Chapter 13. Financial Integration and Capital Flows, pg. 476*Chapter 14. Exchange-Rate Crises and Sudden Stops, pg. 514*Chapter 15. Banking Crises and Twin Crises, pg. 550*Chapter 16. Sovereign Debt Crises, pg. 572*Chapter 17. Macroeconomic Policies and Growth, pg. 602*Chapter 18. Trade Liberalization, Financial-Sector Reforms, and Sequencing, pg. 640*Chapter 19. The Political Economy of Adjustment, pg. 675*Epilogue, pg. 697*References, pg. 701*Index of Names, pg. 741*Index of Subjects, pg. 751

Pierre-Richard Agenor is the Hallsworth Professor of International Macroeconomics and Development Economics at the University of Manchester. Peter J. Montiel is the Fairleigh S. Dickinson Jr. '41 Professor of Economics at Williams College.

Praise for the previous edition: "Since the second edition of this text was published in 1999, both the field of development economics and developing economies themselves have undergone substantial change. Agenor and Montiel have added considerable new material to this third edition, most notably dealing with issues that have risen to prominence in the last decade... This comprehensive treatment of development from a macroeconomic perspective is an indispensable reference for graduate students and faculty."--Choice Praise for the previous edition: "Since its first edition, the book has remained the definitive text on the macroeconomics of developing countries. In this third edition, the authors try to cover the latest advances in this rapidly changing field, making the book the most comprehensive source on the subject."--Abstracts of Public Administration, Development, and Environment

• *Frontmatter, pg. i*Contents, pg. vii*Preface to the Fourth Edition, pg. xix*Introduction and Overview, pg. 1*Chapter 1. Economic Structure and Aggregate Accounts, pg. 12*Chapter 2. Behavioral Functions, pg. 52*Chapter 3. The Government Budget and Fiscal Management, pg. 78*Chapter 4. Macroeconomic Effects of Fiscal Policy, pg. 109*Chapter 5. Financial Markets and the Monetary Transmission Mechanism, pg. 144*Chapter 6. A Framework for Monetary Policy Analysis, pg. 182*Chapter 7. Inflation Targeting, Macroeconomic Stability, and Financial Stability, pg. 224*Chapter 8. Choosing an Exchange-Rate Regime I: Credibility, Flexibility, and Welfare, pg. 262*Chapter 9. Choosing an Exchange-Rate Regime II: The Role of Shocks, Contractionary Effects, and Moral Hazard, pg. 295*Chapter 10. Inflation and Short-Run Dynamics, pg. 331*Chapter 11. Analytical Issues in Disinflation Programs, pg. 381*Chapter 12. Dynamic Stochastic Equilibrium Models with Financial Frictions, pg. 441*Chapter 13. Financial Integration and Capital Flows, pg. 476*Chapter 14. Exchange-Rate Crises and Sudden Stops, pg. 514*Chapter 15. Banking Crises and Twin Crises, pg. 550*Chapter 16. Sovereign Debt Crises, pg. 572*Chapter 17. Macroeconomic Policies and Growth, pg. 602*Chapter 18. Trade Liberalization, Financial-Sector Reforms, and Sequencing, pg. 640*Chapter 19. The Political Economy of Adjustment, pg. 675*Epilogue, pg. 697*References, pg. 701*Index of Names, pg. 741*Index of Subjects, pg. 751

Pierre-Richard Agenor is the Hallsworth Professor of International Macroeconomics and Development Economics at the University of Manchester. Peter J. Montiel is the Fairleigh S. Dickinson Jr. '41 Professor of Economics at Williams College.

Praise for the previous edition: "Since the second edition of this text was published in 1999, both the field of development economics and developing economies themselves have undergone substantial change. Agenor and Montiel have added considerable new material to this third edition, most notably dealing with issues that have risen to prominence in the last decade... This comprehensive treatment of development from a macroeconomic perspective is an indispensable reference for graduate students and faculty."--Choice Praise for the previous edition: "Since its first edition, the book has remained the definitive text on the macroeconomics of developing countries. In this third edition, the authors try to cover the latest advances in this rapidly changing field, making the book the most comprehensive source on the subject."--Abstracts of Public Administration, Development, and Environment

• *Frontmatter, pg. i*Contents, pg. vii*Preface to the Fourth Edition, pg. xix*Introduction and Overview, pg. 1*Chapter 1. Economic Structure and Aggregate Accounts, pg. 12*Chapter 2. Behavioral Functions, pg. 52*Chapter 3. The Government Budget and Fiscal Management, pg. 78*Chapter 4. Macroeconomic Effects of Fiscal Policy, pg. 109*Chapter 5. Financial Markets and the Monetary Transmission Mechanism, pg. 144*Chapter 6. A Framework for Monetary Policy Analysis, pg. 182*Chapter 7. Inflation Targeting, Macroeconomic Stability, and Financial Stability, pg. 224*Chapter 8. Choosing an Exchange-Rate Regime I: Credibility, Flexibility, and Welfare, pg. 262*Chapter 9. Choosing an Exchange-Rate Regime II: The Role of Shocks, Contractionary Effects, and Moral Hazard, pg. 295*Chapter 10. Inflation and Short-Run Dynamics, pg. 331*Chapter 11. Analytical Issues in Disinflation Programs, pg. 381*Chapter 12. Dynamic Stochastic Equilibrium Models with Financial Frictions, pg. 441*Chapter 13. Financial Integration and Capital Flows, pg. 476*Chapter 14. Exchange-Rate Crises and Sudden Stops, pg. 514*Chapter 15. Banking Crises and Twin Crises, pg. 550*Chapter 16. Sovereign Debt Crises, pg. 572*Chapter 17. Macroeconomic Policies and Growth, pg. 602*Chapter 18. Trade Liberalization, Financial-Sector Reforms, and Sequencing, pg. 640*Chapter 19. The Political Economy of Adjustment, pg. 675*Epilogue, pg. 697*References, pg. 701*Index of Names, pg. 741*Index of Subjects, pg. 751