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Facets of macroeconomic policymaking in open economies

In: Macroeconomics for Development

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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.

Suggested Citation

  • ., 2023. "Facets of macroeconomic policymaking in open economies," Chapters, in: Macroeconomics for Development, chapter 6, pages 89-108, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:18793_6
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    Keywords

    Development Studies; Economics and Finance;

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