Capital Mobility and Stabilization Policy Under Fixed and Flexible Exchange Rates

# Capital Mobility and Stabilization Policy Under Fixed and Flexible Exchange Rates > OpenAlex Metadata Hub · https://openalex.org/W1600001357 ## Bibliographic - **DOI:** 10.2307/139336 - **Year:** 1963 - **Citations:** 2613 - **Open Access:** No (closed) - **License:** — - **Source:** https://doi.org/10.2307/139336 ## Authors - Robert A. Mundell ## Abstract The world is still a closed economy, but its regions and countries are becoming increasingly open. The trend, which has been manifested in both freer movement of goods and increased mobility of capital, has been stimulated by the dismantling of trade and exchange controls in Europe, the gradual erosion of the real burden of tariff protection, and the stability, unparalleled since 1914, of the exchange rates. The international economic climate has changed in the direction of financial integration and this has important implications for economic policy. My paper concerns the theoretical and practical implications of the increased mobility of capital. In order to present my conclusions in the simplest possible way, and to bring the implications for policy into sharpest relief, I assume the extreme degree of mobility that prevails when a country cannot maintain an interest rate different from the general level prevailing abroad. This assumption will overstate the case but it has the merit of posing a stereotype towards which international financial relations seem to be heading. At the same time it might be argued that the assumption is not far from the truth in those financial centres, of which Zurich, Amsterdam, and Brussels may be taken as examples, where the authorities already recognize their lessening ability to dominate money market conditions and insulate them from foreign influences. It should also have a high degree of relevance to a country like Canada whose financial markets are dominated to a great degree by the vast New York market. ## Keywords Economics, Order (exchange), Exchange rate, Capital (architecture), International economics, Financial market, Tariff, Interest rate, Financial integration, Capital market, Monetary economics, Finance, Geography ## Concepts - Economics - Order (exchange) - Exchange rate - Capital (architecture) - International economics - Financial market - Tariff - Interest rate - Financial integration - Capital market - Monetary economics - Finance - Geography - Archaeology --- *Metadata only — full text not imported unless Open Access license permits.*

Bài “Capital Mobility and Stabilization Policy Under Fixed and Flexible Exchange Rates” được TradingBase chuyển thành Knowledge Product cho trader — không phải trang đọc abstract OpenAlex. Tóm lược học thuật (đã diễn giải): The world is still a closed economy, but its regions and countries are becoming increasingly open. The trend, which has been manifested in both freer movement of goods and increased mobility of capital, has been stimulated by the dismantling of trade and exchange controls in Europe, the gradual erosion of the real burden of tariff protection, and the stability, unparalleled since 1914, of the exchange rates. The international economic climate has changed in the direction of financial integration and this has important implications for economic policy. My paper concerns the theoretical and practical implications of the increased mobility of capital. In order to present my conclusions in the simplest possible way, and to bring the implications for policy into sharpest relief, I assume the extreme degree of mobility that prevails when a country cannot maintain an interest rate different fro… Phần Trading Insights bên dưới nối nghiên cứu với Forex, vàng, USD, lãi suất và risk regime — để bạn đưa vào journal và playbook. Metadata DOI/OA chỉ là rail tham chiếu; nội dung chính là summary, takeaways và ứng dụng thị trường do Content Factory sinh.