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We will explore models for analyzing a wide variety of issues in open-economy macroeconomics, such as the balance of payments; the determination of exchange rates; the relation between exchange rates and inflation; monetary and fiscal policy under flexible and fixed exchange rate regimes; macroeconomic gains (and pains?) from financial globalization; policy coordination and optimum currency areas; exchange rate crises; debt crises and the possibility of contagion. Our theoretical framework will structure our examination of important historical episodes and contemporary policy debates; the textbook will be supplemented with readings from recent scholarly articles and mainstream news sources. Active class participation is an important part of the course. Prerequisite: ECON 52.