The Monetary Dynamics of International Adjustment under Fixed and Flexible Exchange Rates

Mundell, Robert A.

doi:10.2307/1884252

Cited by 314 publications

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“…Given that developing countries and transition economies have not been fully integrated into the international capital market yet, fiscal and monetary policy under a floating exchange rate can be quite effective (Mundell, 1960).…”

Section: Theoretical Basismentioning

confidence: 99%

An Analysis of the Effects of the Economic Policy in Serbia by the Mundell-Fleming Model

Grubišić

Kamenković

2015

Economic Themes

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Abstract:The global economic crisis has affected the whole world, including Serbia. Countries with different degrees of development reacted with different measures of economic policy, both monetary as well as fiscal. Economic authorities in Serbia have encountered certain limiting factors in the selection of measures, first of all taking into account the unfinished transition process. This paper will examine whether the applied monetary and fiscal policy in Serbia is adequate according to the position which Serbia occupies by the Mundell-Fleming model, as well as to identify the starting position for future economic policy measures.

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Section: Theoretical Basismentioning

confidence: 99%

An Analysis of the Effects of the Economic Policy in Serbia by the Mundell-Fleming Model

Grubišić

Kamenković

2015

Economic Themes

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“…On a daily basis, the right hand does not have to know what the left hand is doing. Each can be trusted to get on with the job (Mundell, 1960(Mundell, , 1962.…”

Section: Conceptsmentioning

confidence: 99%

Designing water abstraction regimes for an ever-changing and ever-varying future

Young

2014

Agricultural Water Management

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“…The choice between fixed and flexible exchange rates, and the "optimal" degree of exchange rate flexibility, has long been fundamental issues in international economics, at least since the seminal contributions of Mundell (1960Mundell ( , 1961 and McKinnon (1963). After the breakdown of the Bretton Woods fixed-rate system in the early 1970s the developed world has adopted a number of approaches to the managing of exchange rates.…”

Section: Introductionmentioning

confidence: 99%

A risk allocation approach to optimal exchange rate policy

Mundaca¹,

Strand²

2005

Oxford Economic Papers

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We derive the optimal exchange rate policy for a small open economy subject to terms-oftrade shocks. Firm owners and workers are risk averse but workers more so. Wages are given or partially indexed in the short run, and capital markets are imperfect. The government sets the exchange rate to allocate risk between workers and owners. With less risk-averse firms, and greater difference in risk aversion between workers and firms, the optimal exchange rate should vary little with pure terms-of-trade shocks but more with general shocks to prices. Optimal exchange rate variation is greater with indexed wages, but is smaller when firms behave monopolistically and when wage taxes (profit taxes) change procyclically (countercyclically) with export prices (import prices). The model gives policy rules for determining optimal variations of the exchange rate, and indicates when it is, and is not, optimal to join a currency union with trading partners, implying zero exchange rate variation.JEL Code: F31, F33, F41.

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The Monetary Dynamics of International Adjustment under Fixed and Flexible Exchange Rates

Cited by 314 publications

References 0 publications

An Analysis of the Effects of the Economic Policy in Serbia by the Mundell-Fleming Model

An Analysis of the Effects of the Economic Policy in Serbia by the Mundell-Fleming Model

Designing water abstraction regimes for an ever-changing and ever-varying future

A risk allocation approach to optimal exchange rate policy

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