This course examines several advanced topics in international finance. The topics include theoretical models of the determination of spot exchange rates as well as econometric tests of the models. Models of flexible exchange rates and of collapsing fixed exchange rates are considered. Empirical models that predict the timing and magnitude of devaluations are examined. The relation of forward rates to expected future spot rates and the nature of risk premiums in international asset pricing models are considered. Quantification of the gains to international diversification and the nature of investors' home bias are analyzed.