Le modèle Mundell-Fleming: Au cœur de la macroéconomie internationale ( Culture économique t. 7) (French Edition) – Kindle edition by Jean Blaise Mimbang. 17 juil. traditionnel de Mundell-Fleming a ensuite souligné la dichotomie . () a par exemple proposé récemment, le critère d’homogénéité des. View Notes – Chapitre 4 – from ECONOMIE at Université de Nantes. Modle de Mundell-Fleming IS-LM en conomie ouverte A partir du modle de.

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It is worth noting that some of the results from this model differ from those of the IS-LM model because of the open economy assumption. Again, this keeps the exchange rate at its targeted level. In the closed economy model, if the central bank expands the money supply the LM curve shifts out, and as a result income goes up and the domestic interest rate goes down. If the central bank is maintaining an exchange rate that is consistent with a balance of payments surplus, over time money d flow into the country and the money supply will rise and vice versa for a payments deficit.

In this graph, under less than perfect capital mobility the positions of both the IS curve and the BoP curve depend on the exchange rate as discussed belowsince the IS-LM graph is actually a two-dimensional cross-section of a three-dimensional space involving all of the interest rate, income, and flleming exchange rate.

Modèle OG-DG — Wikipédia

The accommodated monetary outflows exactly offset the intended rise in the domestic money supply, completely offsetting the tendency of the LM curve to shift to the right, and the interest rate remains equal to the world rate of interest.

Basic assumptions of the model are as follows: Increased government expenditure shifts the IS curve to the right. If there is pressure to appreciate the domestic currency’s exchange rate because the currency’s demand exceeds its supply in the foreign exchange market, the local authority buys foreign currency with domestic currency to increase the domestic currency’s supply in the foreign exchange market.


The Mundell—Fleming model applied to a small open economy facing perfect capital mobility, in which the domestic interest rate is exogenously determined by the world interest rate, shows stark differences from the closed economy model.

This will mean that domestic interest rates and GDP rise. However, the exchange rate is controlled by the local monetary authority in the framework of a fixed exchange rate system. The shift results in an incipient rise in the interest rate, and hence upward pressure on the exchange rate value of the domestic currency as foreign funds start to flow in, attracted by the higher interest rate.

Under the Mubdell framework of a small economy facing perfect capital mobility, the domestic interest rate is fixed and equilibrium in both markets can only be maintained by adjustments of the nominal exchange rate or the money supply by international funds flows.

In the IS-LM model, the domestic interest rate is a key component in keeping both the money market and the goods ,undell in equilibrium. The exchange rate changes enough to shift the IS curve to the location where it crosses the new BoP curve at its intersection with the unchanged LM curve; now the domestic interest rate equals the new level of the global interest rate.

An expansionary monetary policy resulting in an incipient outward shift of the LM curve would make capital flow out of the economy. In particular, it may not face perfect capital mobility, thus allowing internal policy measures to affect the domestic interest rate, munde,l it may be able to sterilize balance-of-payments-induced changes in the money supply as discussed above.

Under both types of exchange rate regime, the nominal domestic money supply Dee is exogenous, but for different reasons. The Mundell—Fleming model has been used to argue that an economy cannot simultaneously maintain a fixed exchange ratefree capital movementand an independent monetary policy. In contrast, under fixed exchange rates e is exogenous and the balance of payments surplus is determined by the model.

Thus, a monetary expansion, in the short run, does not necessarily improve the trade balance. The inflow of money causes the LM curve to shift to the right, and the domestic interest rate becomes lower as low as the world interest rate if there is perfect capital mobility.


Mundell’s paper suggests that the model can be applied to Zurich, Brussels and so on. An increase in the global interest rate shifts the BoP curve upward and causes capital flows out of the local economy. In the very short run the money supply is normally predetermined by the past history of international payments flows.

Modèle OG-DG

If the global interest rate increases, shifting the BoP curve upward, capital flows out to take advantage of the opportunity. Reprinted in Mundell, Robert A. Under less than perfect capital mobility, the depreciated exchange rate shifts the BoP curve somewhat back down.

flemming In a system of flexible exchange rates, central banks allow the exchange rate to be determined by market forces alone. Canadian Journal of Economic and Political Science.

Higher disposable income or a lower real interest rate nominal interest rate minus expected inflation leads to higher consumption spending. The reason is that a large open economy has the characteristics munedll both an autarky and a small open economy.

By using this site, you agree to the Terms of Use and Privacy Policy. A higher e leads to higher net exports. The denominator is positive, and the numerator is positive or negative. Results for a large open economy, on the other hand, can be consistent with those predicted by the IS-LM model. Views Read Edit View history. The central bank under a fixed exchange rate system would have to instantaneously intervene by selling foreign money in exchange for domestic money to maintain the exchange rate.

Higher lagged income or a lower real interest rate leads to higher investment spending.