Achievements The Mundell–Fleming model, also known as the IS-LM-British Petroleum model, is an economic model first set forth (independently) by Robert Mundell and Marcus Fleming. The model is an extension of the IS-LM Model. Whereas the traditional IS-LM Model deals with economy under autarky (or a closed economy), the Mundell–Fleming model describes an open economy.The Mundell–Fleming model portrays the short-run relationship between an economy's nominal exchange rate, interest rate, and output (in contrast to the closed-economy IS-LM model, which focuses only on the relationship between the interest rate and output). The Mundell–Fleming model has been used to argue that an economy cannot simultaneously maintain a fixed exchange rate, free capital movement, and an independent monetary policy. This principle is frequently called the "impossible trinity," "unholy trinity," "irreconcilable trinity," "inconsistent trinity" or the "Mundell–Fleming trilemma."
Works article Domestic Financial Policies under Fixed and under Floating Exchange Rates (1962) book Essays in international economics (1971) Toward assessing the need for international reserves (1967) Reflections on the international monetary reform (1974) Guidelines for balance-of-payments adjustment under the par-value system (1968) Essays on economic policy (1978) The International Monetary Fund : its form and functions (1964) The International Monetary Fund (1964) Guidelines for balance-of-payments adjustment under the par-value system (1968)