Mundell-Fleming theorem/Definition

From Citizendium
Jump to navigation Jump to search
This article contains just a definition and optionally other subpages (such as a list of related articles), but no metadata. Create the metadata page if you want to expand this into a full article.


Mundell-Fleming theorem [r]: A country cannot simultaneusly (a) maintain a stable exchange rate, (b) manage its own monetary policy,and (c) allow free movements of capital across its borders - but must choose two of the three.