1. Lecture 11 The Mundell-Fleming Model and the Exchange-Rate Regime 1

2. 2 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime 1. The distinction between fixed and floating exchange rates. 2. How the short-run effects of monetary and fiscal policy depend crucially upon the exchange–rate regime. 3. Whether exchange rates should be fixed or floating.

3. 3 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime The Mundell–Fleming Model The Goods Market and the IS* Curve The Money Market and the LM* Curve

4. 4 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime The Goods Market and the IS* Curve

5. 5 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime The Money Market and the LM* Curve

6. 6 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime Putting the Pieces Together

7. 7 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime The Small Open Economy Under Floating Exchange Rates 1.Fiscal Policy 2.Monetary Policy 3.Trade Policy

8. 8 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime 1. Fiscal Policy

9. 9 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime 2. Monetary Policy

10. 10 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime 3. Trade Policy

11. 11 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime The Small Open Economy Under Fixed Exchange Rates

12. 12 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime The Small Open Economy Under Fixed Exchange Rates 1.Fiscal Policy 2.Monetary Policy 3.Trade Policy

13. 13 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime 1. Fiscal Policy

14. 14 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime 2. Monetary Policy

15. 15 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime 3. Trade Policy

16. 16 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime Policy in the Mundell–Fleming Model: A Summary

17. 17 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime Interest-Rate Differentials Country Risk and Exchange-Rate Expectations Differentials in the Mundell–Fleming Model

18. 18 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime Interest-Rate Differentials

19. 19 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime Interest-Rate Differentials Case Studies:  International Financial Crisis: Mexico 1994–1995  International Financial Crisis: Asia 1997–1998

20. 20 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime Should Exchange Rates Be Floating or Fixed? Pros and Cons of Different Exchange-Rate Systems Case Study: Monetary Union in the United States and Europe Speculative Attacks, Currency Boards, and Dollarization

21. 21 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime The Impossible Trinity

22. 22 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime From Short Run to the Long Run: The Mundell–Fleming Model with a Changing Price Level

23. 23 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime From Short Run to the Long Run: The Mundell–Fleming Model with a Changing Price Level

24. 24 Lecture 11. The Mundell-Fleming Model and the Exchange-Rate Regime A Concluding Reminder