Mundell-Fleming

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Mundell-Fleming without the LM curve: exogenous interest rate in an open economy

In this paper we evaluate critically the popular Mundell-Fleming model from the standpoint the exogenous interest rate heterodox approach. We criticize the assumptions of exogenous money supply, “perfect” international capital markets and inelastic exchange rate expectations. We show that in a more realistic framework none of the main results of the Mundell-Fleming model on the relative effectiveness of fiscal and monetary policies are valid, either in floating and fixed exchange rate regimes.

Mundell-Fleming sem a curva LM: a taxa de juros exógena na economia aberta

Neste trabalho avaliamos criticamente o modelo Mundell-fleming a luz da abordagem heterodoxa da taxa de juros exógena. Criticamos as hipóteses de moeda exógena, de mercados de capitais externos “perfeitos” e de expectativas cambiais inelásticas. Mostramos que nenhum dos resultados principais do modelo Mundell-fleming sobre eficácia relativa das políticas fiscais e monetárias se sustentam.

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