At a time when the prospects of the Australian economy are at the centre of public debate, the relationship between state and economy deserve special scrutiny. This volume provides a detailed examination of key aspects of the state have had and continue to have a significant impact onAustralia's economic prospects, although the form of state-economy interaction in Australia has changed significantly in recent history. The chapters herein analyse important areas of state-economy interaction from microeconomic and macroeconomic policy areas to recent changes in industrialrelations arrangements, to issues of Australia's changing role in the world economy. Emphasis has been placed on the ways in which economic life is affected by the state, and on how the institutions and policies of the state are shaped by economic forces. Key issues and debates concerningAustralia's economic policy framework, the problems of structural economic adjustment, environmental and social policy and the capacity of the state to manage the economy are all discussed in detail. It succeeds the highly successful State and Economy in Australia edited by Brian Head, published in1983. A broad and non-technical account of the main linkages between state and economy is provided and the book should prove highly useful as a teaching text in undergraduate and post-graduate courses on politics, economic policy, public policy, economic history and economic sociology.