This book contains 13 chapters dealing broadly with public finance and macroeconomic policy in open, developing economies. The book is broadly divided into two parts. The first part deals with general aspects. The second part presents case studies of four interesting countries (Chile, Korea, Mexico, and Turkey), and two areas, the Arab world and commodity-exporting developing countries. Many economists from industrial countries do not fully appreciate the extent to which the public finances of developing countries are influenced by and may in turn influence the external sector of these countries. Most chapters outline the channels through which these influences make themselves felt. Many topics now attracting much attention on the part of economist and policymakers are discussed in some of the chapters as, for example, the relationship between devaluation and fiscal balances, between trade liberalization and fiscal balances, the connection between export instability and revenue instability, the possibility of pursuing policies aimed at insulating the economy and the fiscal accounts from the fluctuations in export earnings, and so forth.