El modelo Mundell-Fleming: una versión intertemporal

This paper presents an intertemporal version of the Mundell-Fleming model, with free capital movements and floating exchange rate. The model includes two subsystems, one for each period that allows exchange rate, production, and interest rate expectations to be determined, under perfect foresight, without losing the simplicity and transparency of the comparative static. The connection between the first period and the second period is given according to the expectation that the public makes in the first period about some variables of the second period. These ones, at the same time, are the variables that are determined on the second period. The model allows the identification of the effects of an expected monetary policy in the future (period 2) on the production, exchange rate, and the interest rate in the present (period 1). These results differ from Sargent and Wallace´s proposition (1975), where expected monetary policy has no effects on the economy activity; but these results are like Fischer’s model (1977), where monetary policy, even if it is expected, does have effects on the real variables such as production.