State policy-making in New Zealand in recent years has undergone a fundamental transformation from social democratic Keynesianism, to New Right monetarism. Like its predecessor, State and Economy in New Zealand, this book critically examines this important shift by considering the interrelationship between the state, the economy and society in New Zealand, while providing an historical analysis of these changes over prolonged periods of time. An appreciation of the broader historical context is essential for a full understanding of the post-1984 reforms. The book investigates the major changes in New Zealand's political economy that have taken place during the twentieth century, focusing in particular on the post-war era. The period falls into two distinct epochs. The first, from 1945-1973, was characterized by economic prosperity and by social integration and political stability at least until the late 1960's. The second, from 1974 to the present, has been characterized by economic stagnation, societal conflict, and political instability. The Political Economy of New Zealand will be of interest to students of New Zealand politics, economics, history, sociology, education and public policy.