This course provides students with the framework and decision tools needed for taking financial decisions and evaluating investment opportunities in a global economy. The presentation proceeds by building up an integrated model of exchange rate and output determination. The resulting model presents a single unifying framework admitting the entire range of exchange rate regimes from pure float to managed float to fixed rates. The model may be used to analyze both comparative static and dynamic time path results arising from temporary or permanent policy or exogenous shocks in an open economy. Relevant applications and case studies will be presented such as global imbalances and the U.S. current account deficits; emerging economies’ participation in the global capital market; Currency, banking and financial crises.