Open Economy Macroeconomics: The Mundell-Fleming Model

In this lecture, I present the central workhorse model of open economy macroeconomics: the Mundell-Fleming model. I first explain the three equations of which it consists (IS curve, LM curve, and IP curve) and then depict the model graphically. Finally, I use the model to analyze the effects of contractionary monetary policy, expansionary fiscal policy, and of a policy mix of contractionary modetary policy combined with expansionary fiscal policy.
For the full Intermediate Macroeconomics Cource, please see the following lectures:
• Macroeconomics: The Go...
• Macroeconomics: The Mu...
• Macroeconomics: The IS...
• Macroeconomics: Moveme...
• Macroeconomics: The Mo...
• Macroeconomics: The LM...
• Macroeconomics: The IS...
• Macroeconomics: The La...
• Macroeconomics: The Ph...
• Macroeconomics: The IS...
• Exchange Rates
• Purchasing Power Parity
• Interest Rate Parity
• Open Economy: The Good...
• Open Economy: Fiscal P...
• Open Economy: Increase...
• Open Economy: Effects ...
• Open Economy: Reducing...
• Open Economy: The Mars...
• Open Economy Macroecon...
• The Solow Model
• The Solow Model With T...

[@KlausPrettner]

Thank you for watching the video and for leaving your comments. If you are interested in more videos on Intermediate Macroeconomics, the full lecture can be found here:
The Goods Market: th-cam.com/video/jgfSE6jAXWM/w-d-xo.html
The Multiplier Effect: th-cam.com/video/9eeBixxQa_o/w-d-xo.html
The IS Curve: th-cam.com/video/g6aba0V6ifo/w-d-xo.html
Movements Along the Curve or Shifts of the Curve: th-cam.com/video/LR5S4xL0DJE/w-d-xo.html
The Money Market: th-cam.com/video/I2iUZVoKkm0/w-d-xo.html
The LM Curve: th-cam.com/video/A5jV_0ZIRU4/w-d-xo.html
The IS-LM Model: th-cam.com/video/e_3clidGpfE/w-d-xo.html
The Labor Market: th-cam.com/video/r8qRf_kIeek/w-d-xo.html
The Phillips Curve: th-cam.com/video/c55Gz1oKr7w/w-d-xo.html
The IS-LM-PC Model: th-cam.com/video/7zvc1ECNHAo/w-d-xo.html
Exchange Rates: th-cam.com/video/QKf7fQCjfVY/w-d-xo.html
Purchasing Power Parity: th-cam.com/video/00H3hXF85Ns/w-d-xo.html
Interest Rate Parity: th-cam.com/video/_LVPhfBBGNs/w-d-xo.html
Goods Market in the Open Economy: th-cam.com/video/CS-fjsU4XBQ/w-d-xo.html
Fiscal Policy and the Multiplier in the Open Economy: th-cam.com/video/w5agukcULuo/w-d-xo.html
Open Economy: Effects of Increases in Foreign Demand: th-cam.com/video/fCzqV8KEFhw/w-d-xo.html
Open Economy: Effects of a Currency Depreciation: th-cam.com/video/zTza0XO-52Q/w-d-xo.html
Reducing the Trade Deficit: th-cam.com/video/S5Mv-WC6iNk/w-d-xo.html
The Marshall-Lerner Condition: th-cam.com/video/Yw3Y74DEge8/w-d-xo.html
The Mundell-Fleming Model: th-cam.com/video/yRefsZdU1No/w-d-xo.html
The Solow Model: th-cam.com/video/t8Q-2P0P3E4/w-d-xo.html
The Solow Model with Technological Progress: th-cam.com/video/sP_eQoPMAKg/w-d-xo.html