Mundell assignment rule
E735847
The Mundell assignment rule is an economic policy principle that prescribes assigning monetary policy to external balance and fiscal policy to internal balance to achieve macroeconomic stability.
Statements (31)
| Predicate | Object |
|---|---|
| instanceOf |
economic policy principle
ⓘ
macroeconomic policy rule ⓘ |
| addresses |
macroeconomic policy coordination
ⓘ
policy effectiveness in open economies ⓘ |
| aimsAt |
external balance
ⓘ
internal balance ⓘ macroeconomic stability ⓘ |
| appliesTo | open economy ⓘ |
| assumes | distinct policy instruments for internal and external balance ⓘ |
| basedOn | principle of effective market classification ⓘ |
| category |
international monetary economics concept
ⓘ
macroeconomic stabilization policy ⓘ |
| concerns | policy assignment ⓘ |
| contrastsWith |
using fiscal policy for external balance as primary tool
ⓘ
using monetary policy for internal balance in highly open economies ⓘ |
| developedBy | Robert A. Mundell NERFINISHED ⓘ |
| field |
international economics
ⓘ
macroeconomics ⓘ |
| implies |
fiscal policy is more effective for internal balance under capital mobility
ⓘ
monetary policy is more effective for external balance under capital mobility ⓘ |
| influenced | design of macroeconomic policy frameworks in open economies ⓘ |
| namedAfter | Robert A. Mundell NERFINISHED ⓘ |
| prescribes |
assigning fiscal policy to internal balance
ⓘ
assigning monetary policy to external balance ⓘ |
| relatedTo |
Mundell–Fleming model
NERFINISHED
ⓘ
Tinbergen rule NERFINISHED ⓘ policy mix ⓘ |
| suggests | each policy instrument should target the objective it most directly influences ⓘ |
| timePeriod | 1960s ⓘ |
| usedIn |
analysis of fixed exchange rate regimes
ⓘ
analysis of policy under capital mobility ⓘ |
Referenced by (1)
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