This course offers an advanced foundation of the key concepts in international finance and a solid understanding of selected topics on exchange rates. The course provides an overview of the institutional characteristics of the foreign exchange market and proceeds to examine how exchange rates are related to the prices of goods and services, capital flows, and interest rates across countries. The course reviews theoretical models that describe the fundamental determinants of exchange rate dynamics, and the empirical evidence regarding exchange rate movements. Emphasis will be given to the implications of monetary and fiscal policy in an open economy for exchange rates.