In this paper we evaluate critically the popular Mundell-Fleming model from the standpoint the exogenous interest rate heterodox approach. We criticize the assumptions of exogenous money supply, "perfect" international capital markets and inelastic exchange rate expectations. We show that in a more realistic framework none of the main results of the Mundell-Fleming model on the relative effectiveness of fiscal and monetary policies are valid, either in floating and fixed exchange rate regimes. We conclude that ,within certain very asymmetric bounds, the central bank has the power to determine the domestic interest rate exogenously even in open economy with free capital mobility and that there is no automatic market mechanism to ensure the automatic adjustment of the interest rate and exchange rate to sustainable levels.
In this paper we evaluate critically the popular Mundell-Fleming model from the standpoint the exogenous interest rate heterodox approach. We criticize the assumptions of exogenous money supply, "perfect" international capital markets and inelastic exchange rate expectations. We show that in a more realistic framework none of the main results of the Mundell-Fleming model on the relative effectiveness of fiscal and monetary policies are valid, either in floating and fixed exchange rate regimes. We conclude that ,within certain very asymmetric bounds, the central bank has the power to determine the domestic interest rate exogenously even in open economy with free capital mobility and that there is no automatic market mechanism to ensure the automatic adjustment of the interest rate and exchange rate to sustainable levels.
1. Dick Harper
Field Supervisor, Lead and/or Technician - RAE Energy
Houston, TX 77070
dickharpernetworks@gmail.com - (979)-777-3923
Currently seeking steady full-time employment with a company that can utilize my skills in electricity,
mechanics, hydraulics, assembly, engineering and team management.
Authorized to work in the US for any employer
WORK EXPERIENCE
Field Supervisor, Lead and/or Technician
RAE Energy - Katy, TX - 2015-12 - Present
* Build and maintain pipeline coating equipment.
* Set up equipment during mobilization onshore and/or offshore.
* Troubleshoot and fix equipment, while in production, to prevent downtime.
* Production line management and supervisor.
* Dealt with electricity up to 480v A/C, pneumatic motors and systems, and PLC's
* Coatings used: FBE, IMPP, IMPU and shrink sleeve
Mechanical Technician
Cross Group - Houston, TX - 2014-09 - 2015-11
* Build and maintain hydraulic BOP systems.
* Operate heavy machinery during builds.
* Operate electrical and diesel driven HPU's.
* Troubleshoot and fix hydraulic circuits.
* Test hydraulic circuits and functional design.
* Rebuild hydraulic valves.
* High pressure tube bending.
Offshore Technician
Offshore Joint Services - Katy, TX - 2014-02 - 2014-09
* Operate and maintain pipe coating equipment.
* Test and build equipment for upcoming jobs.
* Basic shop responsibilities.
EDUCATION
Engineering Technology
Texas A&M - College Station, TX
2008-08 - 2012-05
SKILLS
Electrical, Hydraulics, Pneumatics, Mechanic, Microsoft Office, Management