Economic Development Policy, in this extensively revised second edition, examines how and why economic policies to promote development in low- and middle-income countries has evolved since the mid twentieth century. The book begins by explaining why development economics first coalesced as a field of study in the 1940s and why most newly minted development economists agreed about reasons why poor countries were poor and what to do about it. In the 1980s, development economics and development policy changed dramatically. The focus was on reform, that is getting rid of the policies almost universally implemented around the world in the early post-World War II era. The book explains the rationale for the revolution in development theory and policy and evaluates its success in promoting economic development. Topics include exchange rate determination, international trade and the balance of payments, fiscal and monetary policy, agriculture's role in economic development, and financial markets. The book evaluates the success or failure of those policies, paying special attention to macroeconomic policies of the most rapidly growing economies in East Asia, the problems posed by the big-bang macroeconomics of the transition economies of Eastern Europe, and the poor macroeconomic performance of sub-Saharan Africa. The book also dissects the waves of financial market/exchange rate crises that swept the developing economies in the Debt Crisis of the 1980s, the Asian Financial Crisis of the 1990s, and the subprime mortgage crisis of 2007 to 2015.