Facets of macroeconomic policymaking in open economies

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Chapter 6 in Macroeconomics for Development, 2023, pp 89-108 from Edward Elgar Publishing

Abstract: This chapter considers some key issues related to the open economy performance of developing countries. It develops the basic open economy Mundell-Fleming model and then considers the assignment problem as well as the analysis of the Swan diagram. It then develops the Impossible Trinity or the Trilemma and various models of capital flows. Finally, it considers the management of capital flows.

Keywords: Development Studies; Economics and Finance (search for similar items in EconPapers)
Date: 2023
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