Assess students' ability to analyze how monetary policy, exchange rate regimes (fixed, floating, managed) and capital flow volatility interact to affect macroeconomic stability in emerging markets. Test understanding of transmission mechanisms (interest rates, inflation, output, external balance), the impossible trinity and sterilization costs, empirical indicators (exchange rate and capital flow volatility, reserves, inflation), and policy responses (capital controls, macroprudential tools, monetary–fiscal coordination). Expect use of open‑economy macro frameworks (IS-LM-BP), interpretation of data/case comparisons, and justified policy recommendations under trade-offs.