This text highlights some of the basic principles of monetary economics and their application to the Third World. Drawing on recent data from a wide variety of developing countries, the author discusses central issues such as: money supply and demand and associated problems of stability; causes and consequences of financial liberalization; the "structuralist" versus the "monetarist" debate; inflation and economic development and problems of Third World debt. This new edition revises earlier material and has new chapters on rural financial institutions, exchange rate policies and the debt crisis in less-developed countries. The book also features case studies and separate technical and mathematical sections.