Mundell-Fleming model

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by zhenfei Han4 views·Updated May 15, 2021
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  1. Through the analysis of Miranda flemming model in order to
  2. avoid capital outflow and achieved the balance of internal and
  3. external. Under the Covid 19, the United States shifted the
  4. RM curve upwards through the government's injection and the increase
  5. of money supply.
  6. Meanwhile, the decline of interest rate offset the shift of
  7. the RM curve to the right, which makes the model
  8. reach a new equilibrium point.
  9. The model concludes that monetary policy has a significant effect
  10. on the stimulating economy under floating interest rate.