The Mundell-Fleming model of international macroeconomic originated in the early 1960s and has been extended during the ensuing quarter century. This paper develops an exposition that integrates the various facets of the model and incorporates its extensions into a unified analytical framework. Attention is given to (1) the distinction between short-run and long-run effects of policies, (2) the implications of debt and tax financing of government expenditures, and (3) the role of the exchange rate regime in this regard. By identifying the key mechanisms operating in the model, the exposition clarifies the model’s limitations and facilitates comparison with other, more current approaches.
Versus Nominal Changes
D. An Alternative Measure for Openness
1. Is Protection Higher in Developing Agricultural Economies?
2. Spearman RankCorrelationCoefficients of Changes in Openness and Production in Different Sectors in Developing Agricultural Economies
3. The Impact of Changes in Openness on the Different Sectors of Production
4. The Impact of Changes in Openness on Manufacturing
5. Spearman RankCorrelationCoefficients of Changes in Openness and Production in Different Sectors, in Developing and Agricultural Economies