Are the predictions of the mundell-fleming model applicable to Argentina?

• Hsing, Yu ^[1]
  1. [1] Southeastern Louisiana University

     Southeastern Louisiana University

     Estados Unidos

     
• Localización: Applied econometrics and international development, ISSN 1578-4487, Vol. 21, Nº. 1, 2021, págs. 37-48
• Idioma: inglés
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• Resumen

  • Based on an extended IS-LM model incorporating the exchange rate in the money demand function, this paper finds that fiscal expansion is related with a raise in real output and causes the Argentine peso to appreciate and that monetary expansion is related with a rise in real output and causes the Argentine peso to depreciate. Except for the prediction of the ineffectiveness of fiscal expansion on real output, other predictions of the Mundell-Fleming model are applicable to Argentina.