E.V.K. FitzGerald takes a fresh approach to the macroeconomics of developing countries, based on the influence of global markets on domestic savings, private investment, firm behaviours, employment levels and income distribution. He suggests that a Keynesian approach is still relevant today when reformulated to reflect open economies, heterogeneous firms, poverty reduction objectives and volatile financial markets. The study concludes with clear recommendations as to how global capital markets might be reconstructed in order to better support economic development. INDICE List of Table and Figures Abbreviations and Acronyms Series Editor's Preface Author's Preface Introduction: Liberalization, Investment and Global Markets International Markets and Domestic Savings International Markets and Open Economy Macroeconomics Firm Behaviours, Private Investment and Structural Adjustment Investment and Labour Market under Trade Liberalization Investment and Distribution under Capital Account Liberalization The Institutional Integration of Developing Countries into Global Markets Reconstructing Global Capital Markets to Support Economic Development Notes Statistical Appendix References