Forty years ago, Marcus Fleming and Robert Mundell developed independent models of macroeconomic policy in open economies. Why do we link the two, and why do we call the result the Mundell-Fleming, rather than Fleming-Mundell model? Copyright 2003, International Monetary Fund

Forty years ago, Marcus Fleming and Robert Mundell developed independent models of macroeconomic policy in open economies. Why do we link the two, and why do we call the result the Mundell-Fleming, rather than Fleming-Mundell model? Copyright 2003, International Monetary Fund

This study analyzes the circumstances under which monetary policy can be conducted so as to improve the stability of both monetary growth and exchange rates. For this purpose, the paper develops a portfolio balance model and tests its implications using parameter estimates for the United States...

The large swings in real exchange rates among the major industrial countries that have characterized the past decade have created substantial uncertainty regarding the sustainable levels of these rates. In these circumstances, departures of market exchange rates from longer-run equilibrium may...

The long-run properties of money demand functions in the large industrial countries are examined under the hypothesis that the long-run functions have been stable but that the dynamic adjustment processes are more complex than those represented in most earlier models. The results broadly support...

It is shown that the empirical performance of asset-market models of exchange rates for key currencies can be improved by including information about the term structure of interest rate differentials. The paper extends a portfolio-balance model by including both long- and short-term interest...

Monetary policy in the large industrial countries has in recent years focused primarily on the achievement of predetermined growth rates for monetary aggregates. The authorities may also have an exchange rate objective, but the monetary target constrains their ability to influence the exchange...