The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Mundell, Robert (Born 1932)

  • Charles Engel
Reference work entry


Mundell is best known for his work creating an open-economy version of the IS–LM model. Its special interest lies in the analysis of monetary and fiscal policy. He emphasized the importance of the speed of adjustment in capital markets and the role of fixed versus flexible exchange rates in determining the impact of policy changes and the determination of a desirable monetary–fiscal policy mix. Mundell has also been influential on optimum currency areas, the effect of inflation on portfolio investment, and trade theory.


Assignment problem Balance of payments Central banking Expectations External balance Factor mobility Fiscal policy Fixed exchange rates Flexible exchange rates Heckscher–Ohlin–Samuelson model Interest rates International capital flows IS–LM analysis Monetary approach to the balance of payments Monetary equilibrium Monetary policy Mundell, R. Open-economy models Optimum currency areas Sterilization Sticky prices 

JEL Classifications

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  1. Obstfeld, M. 2001. International macroeconomics: beyond the Mundell–Fleming model. IMF Staff Papers 47(special issue): 1–39.Google Scholar
  2. Royal Swedish Academy of Sciences. 1999. Bank of Sweden Prize in Economic Sciences in Memory of Alfred A. Nobel, 1999. Online. Available at Accessed August 9, 2005.

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Charles Engel
    • 1
  1. 1.