'Australia and the global economy' is a timely text which re-examines the importance of international trade and globalisation to the Australian economy. In 2008-2009 the world witnessed a spectacular collapse of confidence in financial markets. Many thought that the world would re-enter into a Great Depression. Fearing the worst, governments, central bankers and policy makers devised stimulus measures designed to increase consumer spending and industrial production. Although it would appear for now that a Great Depression has been avoided, the world suffered a significant global recession, one that was reported to be the most severe since World War II. As Tim Harcourt states in his foreword, lessons from our economic history remain as relevant today not only for Australia but also for the world’s leading economies. Underlying much of the current Global Financial Crisis has been the interlinked nature of the world’s financial markets and the overall importance of international trade policy. The Australian economy has remained resilient in light of the current crisis. Its relative success with globalisation has been testament to Australia’s ability to not only engage but also be an active participant in world trade and international affairs.