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This course presents the tools needed to analyze issues concerning the macro performance of an open economy in a world of high capital mobility. A consistent model is used throughout, one which captures the central mechanisms which re-equilibrate the economy in the short, intermediate and long runs. The model distinguishes between policy regimes and policy initiatives, thereby providing useful insights into classical results, such as long-run exchange-rate-regime neutrality.n Prerequisite: ECON 52.