Mundell–Fleming model
Modelo Mundell-Fleming
- Date
- 1962 · confidence medium
- Place
- Washington, D.C., United States
- Credited to
- Robert Mundell and Marcus Fleming
- Field
- Knowledge & symbols
What was discovered
An extension of the IS-LM model to a small open economy, describing the short-run relationship between exchange rate, interest rate and output, and the economic-policy 'impossible trinity'.
Formulated independently by Robert Mundell and Marcus Fleming, both economists at the International Monetary Fund at the time.
What it led to
- Formulation of the economic-policy trilemma
- A theoretical basis for monetary policy in open economies