Monetary Policy
        Money demand theory
        Money supply determination (money multipliers, etc.)
        Financing budget deficits and inflation
        The "credit channel" of monetary transmission
        application: the Volcker Fed

Exchange rates and Prices
        Purchasing power parity
        Uncovered interest parity
        Exchange rate and price level determination in the monetary model
        The operation of fixed exchange rate regimes
        Sticky price monetary models and overshooting
        application: defending the dollar

Current Account sustainability and currency crises
        Constraints on fixed exchange rate systems
        Indicators of unsustainable policies
        How currency crises occur

Macroeconomic policy and interdependence in an open economy
        The open-economy IS-LM model (Mundell-Fleming)
        Fiscal and monetary policy under fixed and floating exchange rates
        Transmission of economic shocks
        application: US economic policy and the 1980s appreciation

Long-run economic growth
        The neoclassical growth model (Solow)
        Optimal Growth (the Golden Rule)
        Introduction to optimizing growth models (the Modified Golden Rule)
        application: economic convergence