蒙代尔弗莱明模型 英文版

Brief summary
• 1 the fixed exchange rate system, any expansionary monetary policy will lead to capital flight. Therefore, in this situation, monetary expansion policy on increased income no effect. • 2 In floating rate system, this capital outflows can be offset by currency depreciation. • The two aspects of currency depreciation benefits • 1 Devaluation can stimulate exports increased • 2 Export growth also means the real economic expansion, IS shifting, and will make monetary increase demand and higher interest rates, cause capital backflow.
Completely capital flows
i
L M
L M’
IS
IS’
Fiscal policy
----Floating exchange rate system
i LM
A'
BP
A IS' O y ※ expansion policy, and to make money goes right shift, cause I curve rose, capital inflows, RMB revaluation, native products losing competitiveness, slowing exports, imports, leading to reduced, NX curve has moved to the left is, until I = if balanced E, output without change ※ conclusion: floating exchange rates and capital flows free nation fiscal policy, without effect IS
•The end Thankyou
Completely capital flows
LMonetary policy ----Floating exchange rate system
i
L M L M’
B P
I S
I S’ Y
Expansion monetary policy, leading to the I drop, capitalyoutflows, local O currency devaluation, native products competitive, export increase, decrease imports increased, NX, is shifting to new curve balanced E ' ※ conclusion: floating exchange rates and capital flows free, monetary policy is very effective
Fiscal policy
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•
•
Fixed exchange rate system At start one country in the internal and external equilibrium of money supply constant dot, E, such as government take expansion fiscal policy, IS shifting, income rate curve while rising, interest rates rose and capital inflows, RMB revaluation pressure increased. The central bank keep fixed exchange rate, buying foreign exchange currency, central Banks expand sale money supply, lm curve right shift, I drop, investment income and increased domestic output levels increase. conclusion: fixed exchange rate and capital flows free nation fiscal policy, very effective
Monetary policy
• Fixed exchange rate system • The fixed exchange rate system, when the central bank attempt by increasing the money supply, makes the LM curve to LM 'direction from LM right shift way to lower interest rates, stimulating aggregate demand, domestic interest rates dropped in capital flows free conditions, can cause capital outflows, and foreign exchange rate appreciation pressure to produce. The central bank in order to maintain the stable exchange rate, will be forced to sell to the foreign exchange market, buying local currency exchange. This will make money supply reducing, make LM curve in turn left and returned to its top displacement, initial position.※ conclusion: fixed exchange rate and capital flows free, one country couldn't have carried out under the independent monetary policy.
Mundel Fleming model
-----Analysis in the completely capital flows
Completely capital flows
• Capital completely flows,the curve of BP is horizontal . Namely, the equal of domestic and foreign interest rates make foreign currency equal balance. Otherwise it will cause capital flows forcing the central bank to intervention, keep fixed exchange rates. • The characteristic of this kind of situation is the flow of capital has full flecibility on interest rate movements .
• Monetary policy under the fixed exchange rate to stimulate the economy to no avail, floating exchange rate down, in effect significantly; • Fiscal policy under the fixed exchange rate to stimulate economic effect is remarkable, in machine floating exchange rate down, little or no effect.