Recent years have witnessed a substantial development of global macroeconomic modelling in which researchers have applied techniques developed to consider the industrialized countries to analyse North-South interactions in the world economy. This collection of papers uses these advances to examine the implications for the South of macroeconomic developments in the North, to examine international policy questions in a genuinely global context, and to consider the design of policy packages for the Third World (aid versus trade, growth-oriented adjustment) in an empirical context.