This study examines concepts of nationalism as they effect stability in general, particularly economic stability, in Third World nations. Macesich discusses how emerging nations use economic nationalism as an integrative force to accelerate economic development. He shows how growing world interdependence makes such policies a major cause of monetary instability. In view of the dangerous side effects of economic nationalism, the author recommends a cosmopolitan alternative, with a system of well-defined guidelines within lawful policy systems that constrain bureaucracies and elites from the discretionary exercise of power especially in the monetary and financial areas.