ME  Vol.4 No.9 , September 2013
Emerging Asia’s Version of the Mundell-Fleming Model
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.


Cite this paper
S. Ramanathan and K. Teng, "Emerging Asia’s Version of the Mundell-Fleming Model," Modern Economy, Vol. 4 No. 9, 2013, pp. 596-599. doi: 10.4236/me.2013.49064.
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