Topics covered in this course include the monetary approach to the balance of payments; different exchange rate regimes; international capital mobility; international monetary organizations; markets for foreign exchange, including the Eurocurrency markets; the automatic adjustment mechanism; interest-rate and purchasing-power parities; speculative activity in money markets; and the setting of international macroeconomic policy.

CILO-1: Analyze and evaluate the impact of different exchange rate regimes on international trade, investment, and capital flows. CILO-2: Apply the concepts of interest-rate and purchasing-power parities to summarize the factors affecting international trade and capital flows, and to make predictions about future exchange rates. CILO-3: Assess the role and effectiveness of international monetary organizations in promoting international financial stability and managing currency crises. CILO-4: Evaluate the impact of speculative activity in money markets on exchange rates, capital flows, and macroeconomic policy, and recommend strategies for managing risks associated with such activity.