‘For too long, standard macroeconomics texts have largely reflected the Keynesian legacy of a closed economy approach. But the world has changed and the international flows of goods, services, people and capital are a dominant feature of the modern global economy. It is no longer adequate for a macroeconomics text to touch on these issues in a few closing chapters. This volume contributes to a different view: one which places international issues front and centre. The scope and limitations of monetary and fiscal policy are analysed in a global context in which international financial markets and exchange rates play a critical role. These are not easy topics for a student. This volume stands out for the extraordinary clarity with which it addresses complex issues.’ — Grant M. Scobie, New Zealand Productivity Commission