Whereas the traditional IS-LM model deals with economy under autarky or a closed economy , the Mundell—Fleming model describes a small open economy. Mundell's paper suggests that the model can be applied to Zurich, Brussels and so on. The Mundell—Fleming model portrays the short-run relationship between an economy's nominal exchange rate, interest rate, and output in contrast to the closed-economy IS-LM model, which focuses only on the relationship between the interest rate and output. The Mundell—Fleming model has been used to argue that an economy cannot simultaneously maintain a fixed exchange rate , free capital movement , and an independent monetary policy. An economy can only maintain two of the three at the same time. This principle is frequently called the " impossible trinity ," "unholy trinity," "irreconcilable trinity," "inconsistent trinity," "policy trilemma," or the "Mundell—Fleming trilemma.
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How are real long run interest rates determined throughout the world, and why have they remained so high since the beginning of the eighties? The inflation of the seventies, the collapse of the Sovietic block and its opening on the Western economy, the financial deregulation, and above all the accumulation of public deficits have been the main explanations advanced.
Yet do not central banks, since they drive day after day the short run interest rates, also exert a determining influence upon real long run interest rates? Focusing on these questions, the article reexamines the main theorical frameworks refered to in the literature with respect to the way interest rates are determined, and tries to appreciate the influence of various phenomena, under the light of the econometric studies that have been published during the last fifteen years.
The case of a world central bank and the case of small open economies are successively studied, before the questions of the integration of capital markets and their imperfections are raised. The author holds the wiew that, while capital markets seem more and more integrated, significant resistances still affect the international mobility of capitals. This leaves a field of opportunities open for the monetary policy, provided it is conducted for the sake of a sufficiently large zone.
Existe-t-il une relation entre taux courts et taux longs? Des taux courts aux taux longs. Le cas d'une banque centrale mondiale.
Notre analyse se placera dans un autre cadre. Taux de croissance du PIB mondial en volume. Il subsiste donc une hausse du PIB. Le risque d'inflation. Le risque de taux. Le risque de change. Dans le cas contraire,. Akhtar, M. Blanchard S. Fischer, MIT Press, pp Brainard et G. Perry, pp Mohr, Tubingen. Reconstructing the open economy theory, Basil Blackwell. Ce raisonnement compare deux placements nominaux. Liste des illustrations 1. Taux de croissance du PIB mondial en volume [link] 2.
Taux de croissance du PIB mondial en volume 1. Notes 1.
Le modèle Mundell-Fleming : Au coeur de la macroéconomie internationale
Le modèle Mundell-Fleming: Au cœur de la macroéconomie internationale (Culture économique t. 7)