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Does the Mundell-Fleming Model apply to Poland?

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  • Yu HSING

    (Southeastern Louisiana University, Hammond, Louisiana, USA)

Abstract

Applying an extended IS-LM model to Poland, this paper finds that fiscal expansion does not raise output but causes real appreciation and that monetary expansion increases output and leads to real depreciation. Besides, a lower real interest rate, a higher real stock price or a lower expected inflation rate helps raise output; and a higher real interest rate, a higher real stock price or a lower expected inflation rate results in real appreciation. Hence, the predictions of the Mundell- Fleming model are applicable to Poland.

Suggested Citation

  • Yu HSING, 2019. "Does the Mundell-Fleming Model apply to Poland?," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(621), W), pages 265-272, Winter.
    • Handle: RePEc:agr:journl:v:xxvi:y:2019:i:4(621):p:265-272
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    References listed on IDEAS

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