Abstract
For over thirty years, the Mundell-Fleming model has served not only as a template for research in international macroeconomics, but also as an important pedagogical tool. The underlying pedagogical value of the model is that it can be combined with other models to explain how different exogenous factors impact the balance of payments and the exchange rate. The purpose of this paper, in turn, is to elucidate the pedagogical value of the Mundell-Fleming model by presenting a traditional market model consisting of their model and a Keynesian-Hicksian IS/LM and aggregate supply and demand curve model that can be used to evaluate the impacts macroeconomic policies and events have on exchange rates.
Recommended Citation
(2005)
"A Re-examination of the Mundell-Fleming Flexible Exchange-Rate Model,"
Journal of Economics and Finance Education: Vol. 4:
Iss.
2, Article 1.
Available at:
https://scholarship.rollins.edu/jefe/vol4/iss2/1
