This course deals with macroeconomic analysis of open economies. It emphasizes the monetary aspects and the determination of exchange rates. It starts with the basic principles of open economies and moves through understanding basic models for the determination of the exchange rate. First, macroeconomic models of open economies will be developed and applied to contemporary policy issues. Then the effectiveness of macroeconomic policy in the open economy, which depends heavily on the exchange rate regime is investigated. It is summed up by a discussion of the variety of exchange rate regimes, the evolution of debt crises, and the causes of currency crises. Chinese macroeconomic data and stabilization efforts will constitute the case studies and examples throughout the course. Prerequisites course (or instructor’s consent): microeconomics, macroeconomics, calculus, statistics, fundamental principles of finance, accounting.