Emerging Asia’s Version of the Mundell-Fleming Model


This paper explains the Mundell-Fleming model in the context of Emerging Asia economies management of capital mobility. Central Banks and Financial Regulators in Emerging Asia adopt a modified version of the model that incorporates two vital levers, a policy driven and a market driven method that is adaptable to the magnitude of capital flow. A policy combination mix of both policy and market driven provides smooth monetary policy signal transmission to exchange rates.

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Ramanathan, S. and Teng, K. (2013) Emerging Asia’s Version of the Mundell-Fleming Model. Modern Economy, 4, 596-599. doi: 10.4236/me.2013.49064.

Conflicts of Interest

The authors declare no conflicts of interest.


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