Balance of payments theory and policy -- The foreign exchange market -- The balance of payments -- Elasticity and absorption approaches to the balance of payments -- Macroeconomic policy in an open economy -- The monetary approach to the balance of payments -- Exchange rate determination: theory, evidence and policy -- Purchasing power parity and floating exchange rate experience -- Modern models of exchange rate determination -- The portfolio balance model -- Empirical evidence on exchange rates -- Fixed, floating and managed exchange rates -- The post-war international monetary system -- The international monetary system -- The eurocurrency and eurobond markets -- Currency derivatives: futures, options and swaps -- International macroeconomic policy coordination -- The latin american debt crisis -- The european monetary system and European monetary union -- Currency crises and the East Asian financial crisis -- Financial innovation and the credit crunch.