The course is aimed at providing the basic tools for analyzing a range of important internation alfinancial and macroeconomic policy issues. The course will cover balance of payments and exchange rate determination, the informational efficiency of the foreign exchange market, monetary and fiscal policies under alternative exchange rate regimes, currency volatility and crises, optimal currency areas, the choice of exchange rate regimes, external debt issues, and the behavior of international capital flows. In the process, the course will also review the broad evolution of the international monetary system since the second half of the nineteenth century focusing on the nature of the international adjustment process under alternative exchange rate regimes, the Bretton Woods System of pegged but adjustable exchange rates, and the current period of generalized but differentiated floating (Bretton Woods II or Inflation Targeting Plus?). The course will also address a number of topical policy issues including the possible forms and rationales for the ongoing efforts to strengthen financial and monetary cooperation in Asia as well as the role the region is playing in financing global current account imbalances through massive reserve accumulation. Unlike discipline-oriented courses that focus mostly on analytical issues, this course will consider real world policy issues with particular attention to Asia.