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anjali_pant

  • 4 years ago

Hey ! Please explain the case of flexible exchange rate (using monetary/fiscal policy) under Mundell-Fleming model. Also explain in detail , that how interest differential creates capital inflow/outflow and consequently currency appreciates/depreciates. Also the impact on real exchange rate as well.

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  1. vaboro
    • 4 years ago
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    http://en.wikipedia.org/wiki/Mundell%E2%80%93Fleming_model

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