This module introduces the analytical tools of macroeconomics and international finance and applies them extensively to real life case studies, with emphasis on Asia. The course begins with the analysis of business cycle dynamics (how output, employment, interest rate and price are determined) and the role of stabilization policy. It then moves on to the open economy with trade and capital flows. Key issues covered here include the determination of exchange rate in the short- and long-run, how currency risk can be hedged, how economic “shocks” are transmitted internationally and what policy can achieve in response. Additional topics covered include: determinants of economic growth in the long-run with lessons from Asia, rising economic integration in Asia and implications on currency regime, global imbalance and policy adjustments, and perspectives on financial crises.