This book is designed as a first level introduction to macroeconomic analysis and policy, with strong emphasis on the policy side. It also covers international economic relationships and associated policy implications. I have placed the emphasis heavily on policy and taken the pragmatic view that macroeconomics is, in any case, a simplified view of the economy designed primarily for policy purposes. Alternative views of the economy-such as the Keynesian and Monetarist approaches-are treated as alternative models, not necessarily mutually exclusive, with different policy implications and with the appropriate choice to be made on the basis of empirical evidence.