The Effects of Monetary and Fiscal Policy for a Small Open Economy With Flexible Exchange Rates

The conventional view of the impact of monetary and fiscal policies on output for a small open economy with flexible exchange rates and capital mobility are derived from the papers of Mundell and Fleming (1960's). Some more recent models by Casas, Argy and Salop, and Sachs in the seventies and eighties have added new elements to the traditional Mundell-Fleming framework such as a labor market with a wage indexation structure, and the distinction between producer prices and consumer prices. In these newer models, in situations where real wages are fixed, the traditional Mundell-Fleming result of monetary policy being effective and fiscal policy being ineffective is reversed.

Name thesis:degree_name

Ph.D.

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Economics

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2014

Author dc:creator

• Reuben, Steven A.

• Economics, General
• Political Science, International Law and Relations

Identifier

(UMI)AAI8908812

OAI identifier oai:identifier

oai:www.ideals.illinois.edu:2142/70808