Modern Economy

Volume 4, Issue 9 (September 2013)

ISSN Print: 2152-7245   ISSN Online: 2152-7261

Google-based Impact Factor: 0.96  Citations  

Emerging Asia’s Version of the Mundell-Fleming Model

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DOI: 10.4236/me.2013.49064    6,084 Downloads   8,543 Views  Citations

ABSTRACT

This paper explains the Mundell-Fleming model in the context of Emerging Asia economies management of capital mobility. Central Banks and Financial Regulators in Emerging Asia adopt a modified version of the model that incorporates two vital levers, a policy driven and a market driven method that is adaptable to the magnitude of capital flow. A policy combination mix of both policy and market driven provides smooth monetary policy signal transmission to exchange rates.

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Ramanathan, S. and Teng, K. (2013) Emerging Asia’s Version of the Mundell-Fleming Model. Modern Economy, 4, 596-599. doi: 10.4236/me.2013.49064.

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