This course discusses the impacts of money demand and money supply, and therefore monetary policies on output, employment, and inflation. The role of central bank and its interaction with firms and workers, more specifically, how it should carry out monetary policies in face of the rational expectations of these economic agents in the private sector, will be evaluated. In addition, under the rapid globalization, impacts of one country’s monetary policy on exchange rates and other country’s economies will also be studied. After taking this course, students are expected to be able to explain different phenomenon of the macro-economy and make forecasts about the basic macro-economic trends.