This volume contains the proceedings of a September 1987 conference organized by the Centre for Economic Policy Research and the International Economics Study Group. The introduction provides a major survey of the literature on North-South macroeconomic interactions. The chapters examine measures of North-South interdependence, estimated using an empirical model of the OECD and the LDCs; North-South policy coordination in response to a worsening of the South’s balance of payments position; how cooperative agreements over commodity prices affect welfare in both the South and the North; the use of financial market risk-management techniques to manage commodity price fluctuations; the effects of financial constraints on trade between North and South; the terms and availability of finance for the South; and the interactions of domestic and external finance in influencing LDC growth performance. The volume will interest those involved in policy debates concerning international debt, the global consequences of macroeconomic policy choices in the North, commodity markets, and the economic policies of the less developed countries. It will also form a valuable addition to undergraduate and postgraduate reading lists in trade, finance, international macroeconomics and the economics of developing countries.